Malaysia Stock Market May Extend Losing Streak

(RTTNews) - The Malaysia stock market has finished lower in four straight sessions, sinking almost 25 points or 1.6 percent along the way. The Kuala Lumpur Composite Index new rests just beneath the 1,490-point plateau and it's looking at another soft start again on Wednesday.

The global forecast for the Asian markets is mixed to lower on inflation and interest rate concerns. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The KLCI finished slightly lower on Tuesday as losses from the financials and glove makers, while the plantations were up and the telecoms were mixed.

For the day, the index dipped 1.53 points or 0.10 percent to finish at the daily low of 1,488.27 after peaking at 1,497.00. Volume was 2.191 billion shares worth 1.655 billion ringgit. There were 470 gainers and 348 decliners.

Among the actives, Axiata retreated 0.68 percent, while CIMB Group shed 0.36 percent, Dialog Group gained 0.45 percent, Digi.com rose 0.28 percent, Genting slumped 0.66 percent, Genting Malaysia improved 0.34 percent, Hartalega Holdings skidded 0.63 percent, IHH Healthcare tumbled 0.81 percent, INARI surged 2.26 percent, IOI Corporation added 0.49 percent, Kuala Lumpur Kepong was up 0.27 percent, Maybank dropped 0.45 percent, Maxis climbed 1.63 percent, MISC increased 0.29 percent, Petronas Chemicals jumped 1.93 percent, PPB Group plummeted 3.23 percent, Press Metal rallied 1.69 percent, Public Bank lost 0.21 percent, RHB Capital declined 0.69 percent, Sime Darby tanked 1.72 percent, Sime Darby Plantations advanced 0.71 percent, Tenaga Nasional sank 0.46 percent, Top Glove plunged 2.44 percent and MRDIY, Telekom Malaysia and Petronas Gas were unchanged.

The lead from Wall Street is negative as the major averages quickly moved lower on Tuesday, rebounded midday but then faced renewed consolidation that lasted throughout the rest of the session.

The choppy trading on Wall Street came as traders expressed some uncertainty about the near-term outlook for the markets following recent weakness.

The volatility on the day also came amid a surge in treasury yields, with the yield on the benchmark ten-year note jumping to its highest levels in almost three months.

Potentially adding to the worries about interest rates, the Institute for Supply Management said service sector activity in the U.S. unexpectedly grew at a slightly faster rate in August. The report is a positive sign for the economy but may have led to concerns the Federal Reserve will see the data as an indication that it can continue to aggressively raise interest rates.

Oil futures settled barely higher on Tuesday after the decision by OPEC+ to cut output by 100,000 barrels per day in October, although the dollar's uptick limited oil's upside. West Texas Intermediate Crude oil futures for October ended higher by a penny or $0.09% at $86.88 a barrel.