Rally May Stall For Malaysia Stock Market

(RTTNews) - The Malaysia stock market has moved higher in three straight sessions, collecting almost 15 points or 0.9 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,600-point plateau although it's likely to open to the downside on Tuesday. The global forecast for the Asian markets is soft, with profit-taking likely on the menu. The European markets were mixed and the U.S. bourses were down and the Asian markets are also expected to open under water.

The KLCI finished modestly higher again on Monday following gains from the financial shares and telecoms, while the industrials were soft and the plantations were mixed. For the day, the index added 4.98 points or 0.31 percent to finish at 1,602.45 after trading between 1,599.59 and 1,609.65. Among the actives, 99 Speed Mart Retail fell 0.40 percent, while AMMB Holdings perked 0.18 percent, Axiata increased 0.78 percent, Celcomdigi and CIMB Group both gained 0.54 percent, Gamuda dropped 0.88 percent, IHH Healthcare shed 0.73 percent, IOI Corporation dipped 0.26 percent, Maxis surged 2.23 percent, Maybank collected 0.51 percent, MRDIY added 0.65 percent, Nestle Malaysia soared 2.04 percent, Petronas Chemicals plummeted 5.60 percent, PPB Group stumbled 1.78 percent, Press Metal spiked 1.77 percent, Public Bank advanced 0.89 percent, QL Resources eased 0.24 percent, RHB Bank rose 0.31 percent, Sime Darby lost 0.60 percent, SD Guthrie rallied 1.19 percent, Telekom Malaysia improved 0.85 percent, Tenaga Nasional climbed 1.18 percent, YTL Corporation sank 0.75 percent, YTL Power slumped 1.16 percent and Petronas Dagangan, Petronas Gas, Kuala Lumpur Kepong, Sunway and MISC were unchanged.

The lead from Wall Street is weak as the major averages opened lower on Monday and spent most of the day under water, finishing near daily lows.

The Dow stumbled 349.27 points or 0.77 percent to finish at 45,282.47, while the NASDAQ sank 47.24 points or 0.22 percent to close at 21,449.29 and the S&P 500 lost 27.59 points or 0.43 percent to end at 6,439.32.

Profit taking contributed to the initial weakness on Wall Street, as some traders looked to cash in on the strong gains posted last Friday, which lifted the Dow to a new record closing high.

The rally seen during last Friday's session came as remarks from Federal Reserve Chair Jerome Powell seemed to indicate the central bank is likely to lower interest rates next month.

On the U.S. economic front, the Commerce Department released a repot this morning showing new home sales in the U.S. decreased from an upwardly revised level in July.

Crude oil jumped on Monday, on concerns that Western sanctions on Russian oil exports may continue longer than anticipated. West Texas Intermediate crude for October delivery was up $1.20 or 1.89 percent at $64.86 per barrel.