Mild Upside Seen For Malaysia Stock Market

(RTTNews) - The Malaysia stock market has alternated between positive and negative finishes through the last five trading days since the end of the four-day losing streak in which it had fallen more than a dozen points or 0.9 percent. The Kuala Lumpur Composite Index now sits just above the 1,440-point plateau and it may tick higher again on Wednesday.

The global forecast for the Asian markets is cautiously optimistic ahead of the Federal Reserve's monetary policy announcement later today. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

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

For the day, the index rose 2.94 points or 0.20 percent to finish at 1,442.14 after trading between 1,437.98 and 1,443.46.

Among the actives, Axiata plummeted 3.54 percent, while Mr. DIY plunged 1.99 percent, Westports Holdings tanked 1.47 percent, Hong Leong Bank soared 1.25 percent, QL Resources tumbled 1.25 percent, Petronas Gas jumped 1.06 percent, Petronas Chemicals and Press Metal both rallied 0.82 percent, Telekom Malaysia climbed 0.80 percent, IOI Corporation advanced 0.77 percent, Celcomdigi added 0.71 percent, IHH Healthcare gained 0.67 percent, Kuala Lumpur Kepong sank 0.54 percent, Maxis rose 0.51 percent, Sime Darby improved 0.44 percent, Tenaga Nasional increased 0.41 percent, PPB Group perked 0.40 percent, Maybank collected 0.33 percent, Genting gathered 0.25 percent, Public Bank was up 0.24 percent, CIMB Group and RHB Bank both strengthened 0.18 percent and MISC, Genting Malaysia and Dialog Group were unchanged.

The lead from Wall Street is positive as the major averages shook off early weakness on Tuesday, moving into positive territory by midday and ending firmly in the green.

The Dow advanced 123.91 points or 0.38 percent to finish at 33,052.87, while the NASDAQ added 61.76 points or 0.48 percent to close at 12,851.24 and the S&P 500 gained 26.98 points or 0.65 percent to end at 4,193.80.

The early weakness on Wall Street reflected a negative reaction to a Labor Department report showing that employment costs jumped slightly more than expected in the third quarter.

Selling pressure waned shortly after the start of trading, however, as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later today.

The subsequent rebound by stocks came as traders resumed Monday's bargain hunting, as stocks remain at relatively reduced levels despite the rally seen in the previous session.

Oil prices dropped on Tuesday, and posted a monthly loss as well, as concerns about the outlook for energy demand and a stronger dollar weighed on the commodity. West Texas Intermediate crude oil futures for December fell $1.29 or 1.6 percent at 81.02 a barrel, the lowest settlement in two months. WTI crude futures shed nearly 11 percent in October.