Malaysia Stock Market May Hand Back Tuesday's Gains

(RTTNews) - The Malaysia stock market on Tuesday snapped the two-day slide in which it had eased less than a single point or 0.1 percent. The Kuala Lumpur Composite Index now sits just above the 1,530-point plateau although it figures to head south again on Wednesday.

The global forecast for the Asian markets is broadly negative on rising pessimism over the outlook for interest rates. The European and U.S. markets finished sharply lower and the Asian markets figure to also open under pressure.

The KLCI finished sharply higher on Tuesday following gains from the financial shares, plantation stocks and telecoms.

For the day, the index advanced 19.09 points or 1.26 percent to finish at 1,531.37 after trading between 1,512.63 and 1,533.16.

Among the actives, Axiata gathered 0.36 percent, while Celcomdigi gained 0.47 percent, CIMB Group soared 2.42 percent, Genting Malaysia improved 0.70 percent, IHH Healthcare rallied 1.47 percent, IOI Corporation jumped 1.51 percent, Kuala Lumpur Kepong added 0.62 percent, Maxis strengthened 1.33 percent, Maybank and Petronas Chemicals both accelerated 1.94 percent, MISC and Sime Darby both rose 0.41 percent, MRDIY skyrocketed 2.84 percent, Press Metal increased 0.65 percent, Public Bank climbed 1.15 percent, QL Resources advanced 0.87 percent, RHB Capital collected 0.90 percent, Sime Darby Plantations spiked 2.25 percent, Tenaga Nasional surged 2.78 percent, YTL Power tumbled 1.73 percent, YTL Corporation slumped 1.29 percent and Genting, PPB Group, Telekom Malaysia and AMMB Holdings were unchanged.

The lead from Wall Street suggests consolidation as the major averages opened sharply lower and stayed that way throughout the session.

The Dow plunged 524.63 points or 1.35 percent to finish at 38,272.75, while the NASDAQ tumbled 286.95 points or 1.80 percent to close at 15,655.60 and the S&P 500 sank 68.67 points or 1.37 percent to end at 4,953.17.

The sell-off on Wall Street followed the release of a highly anticipated Labor Department report showing consumer prices in the U.S. increased by slightly more than expected in January.

With Federal Reserve officials repeatedly saying they need more confidence that inflation is slowing before lowering interest rates, the data has further reduced optimism about a near-term rate cut.

Treasuries yields surged in response to the data, with the yield on the benchmark ten-year note reaching its highest level in two months.

Oil prices climbed higher Tuesday amid concerns about supply due to the ongoing tensions in the Middle East. West Texas Intermediate Crude oil futures for March rose $0.95 or 1.25 percent at $77.87 a barrel, up for a seventh straight session.