Rally Likely To Stall For Malaysia Stock Market

(RTTNews) - Ahead of Wednesday's holiday for National Day, the Malaysia stock market had moved higher in two straight sessions, collecting more than 20 points or 1.3 percent along the way. The Kuala Lumpur Composite Index new rests just above the 1,510-point plateau although it figures to spin its wheels on Thursday.

The global forecast for the Asian markets is broadly negative on inflation and interest rate concerns. The European and U.S. markets were down on Wednesday and now the Asian markets are expected to open in similar fashion.

The KLCI finished modestly higher on Tuesday following gains from the plantations and telecoms, while the financials and glove makers were mixed.

For the day, the index improved 10.48 points or 0.70 percent to finish at the daily high of 1,512.05 after moving as low as 1,496.80. Volume was 2.864 billion shares worth 2.716 billion ringgit. There were 453 gainers and 406 decliners.

Among the actives, Axiata climbed 1.33 percent, while CIMB Group sank 0.56 percent, Dialog Group increased 1.25 percent, Digi.com advanced 1.30 percent, Genting Malaysia added 1.01 percent, Hartalega Holdings slumped 1.78 percent, IHH Healthcare tumbled 2.21 percent, INARI gained 0.74 percent, IOI Corporation strengthened 1.44 percent, Kuala Lumpur Kepong surged 3.58 percent, Maybank and Telekom Malaysia both collected 0.34 percent, MISC lost 0.28 percent, MRDIY spiked 3.33 percent, Petronas Chemicals dropped 1.12 percent, Petronas Dagangan skyrocketed 7.70 percent, PPB Group soared 3.53 percent, Press Metal improved 1.27 percent, Public Bank rallied 1.73 percent, RHB Capital skidded 1.20 percent, Sime Darby retreated 2.14 percent, Sime Darby Plantations jumped 1.59 percent, Tenaga Nasional accelerated 2.51 percent, Top Glove rose 0.62 percent and Genting and Maxis were unchanged.

The lead from Wall Street is soft as the major averages shook off a positive open on Wednesday, hugging the line for much of the day before a late slide pushed them firmly into the red for the fourth straight session.

The Dow tumbled 280.44 points or 0.88 percent to finish at 31,510.43, while the NASDAQ slumped 66.93 points or 0.56 percent to close at 11,816.20 and the S&P 500 sank 31.16 points or 0.78 percent to end at 3,955.00.

The continued weakness on Wall Street reflected lingering concerns about higher interest rates following some hawkish comments from Federal Reserve officials.

Exacerbating those concerns, Eurozone inflation hit a new record in August and added further pressure on the European Central Bank to tighten policy more aggressively as soon as next week.

In economic news, payroll processor ADP said that private sector employment in the U.S. increased by much less than expected in August.

Crude oil prices saw further downside on Wednesday, extending recent losses on concerns about the outlook for the global economy after the Eurozone's record high inflation report. West Texas Intermediate for October delivery tumbled $2.09 or 2.3 percent to $89.55 a barrel.