Malaysia Stock Market May Reverse Tuesday's Losses

(RTTNews) - The Malaysia stock market on Tuesday snapped the two-day winning streak in which it had picked up more than 5 points or 0.3 percent. The Kuala Lumpur Composite Index now rests just above the 1,475-point plateau although it figures to bounce higher again on Wednesday.

The global forecast for the Asian markets is upbeat on increasing optimism over the outlook for interest rates. The European markets were mixed and flat and the U.S. bourses were solidly higher and the Asian markets figure to split the difference.

The KLCI finished modestly lower on Tuesday following losses form the financial shares and mixed performances from the plantations and telecoms.

For the day, the index dropped 14.09 points or 0.95 percent to finish at 1,476.38 after trading between 1,471.79 and 1,487.99.

Among the actives, Axiata added 0.66 percent, while CIMB Group retreated 1.41 percent, Dialog Group declined 1.54 percent, Digi.com advanced 0.96 percent, Genting slid 0.59 percent, Genting Malaysia tumbled 1.74 percent, IHH Healthcare weakened 1.16 percent, INARI lost 0.75 percent, IOI Corporation slumped 1.30 percent, Kuala Lumpur Kepong fell 0.64 percent, Maybank dropped 0.92 percent, Maxis jumped 1.99 percent, MISC shed 0.82 percent, MRDIY plummeted 3.68 percent, Petronas Chemicals plunged 1.93 percent, Press Metal and Nestle both dipped 0.37 percent, Public Bank stumbled 1.19 percent, RHB Capital and Petronas Gas both eased 0.35 percent, Sime Darby sank 0.85 percent, Sime Darby Plantations gained 0.45 percent, Telekom Malaysia skidded 0.97 percent, Tenaga Nasional tanked 1.88 percent and PPB Group was unchanged.

The lead from Wall Street is broadly positive as the major averages shook off flat morning trade on Tuesday, rallying in the afternoon.

The Dow jumped265.67 points or 0.78 percent to finish at 34,156.69, while the NASDAQ surged 226.34 points or 1.90 percent to end at 12,113.79 and the S&P 500 advanced 52.92 points or 1.29 percent to close at 4,164.00.

The late rally on Wall Street came in reaction to Federal Reserve Chair Jerome Powell's remarks at the Economic Club of Washington. In a Q&A session, Powell said he expects 2023 to be a year of "significant declines in inflation."

Powell said inflation is beginning to ease, though he expects it to be a long process and cautioned that interest rates could rise more than markets expect if the economic data doesn't cooperate.

Oil prices advanced Tuesday on expectations of higher energy demand from China, and on supply concerns following a massive earthquake in Turkey on Monday. West Texas Intermediate Crude oil futures for March ended higher by $3.02 or 4.1 percent at $77.14 a barrel, the highest close since January 31.