Renewed Selling Pressure Expected For Malaysia Shares

(RTTNews) - The Malaysia stock market has finished higher in two of three trading days since the end of the two-day slide in which it had dipped almost 8 points or 0.6 percent. The Kuala Lumpur Composite Index now rests just above the 1,450-point plateau although it figures to head south again on Thursday.

The global forecast for the Asian markets suggests consolidation on concerns about the outlook for interest rates following the FOMC's rate decision. The European and U.S. markets were sharply lower and the Asian markets are expected to open in similar fashion.

The KLCI finished modestly higher on Wednesday following gains from the glove makers and plantation, while the financials and telecoms were mixed.

For the day, the index rose 5.69 points or 0.39 percent to finish at 1,451.61 after trading between 1,442.89 and 1,451.92. Volume was 2.493 billion shares worth 1.783 billion ringgit. There were 487 gainers and 340 decliners.

Among the actives, Axiata advanced 0.70 percent, while CIMB Group perked 0.18 percent, Dialog Group shed 0.50 percent, Digi.com jumped 1.06 percent, Genting gained 0.68 percent, Hartalega Holdings surged 2.82 percent, IHH Healthcare and MR DIY both added 0.50 percent, INARI lost 0.41 percent, IOI Corporation rose 0.25 percent, Kuala Lumpur Kepong rallied 1.24 percent, Maxis soared 2.12 percent, Petronas Chemicals was up 0.23 percent, PPB Group fell 0.12 percent, Press Metal and Sime Darby Plantations both climbed 0.92 percent, Public Bank collected 0.91 percent, RHB Capital sank 0.71 percent, Top Glove spiked 1.25 percent and Telekom Malaysia, Tenaga Nasional, Sime Darby, Maybank, MISC and Genting Malaysia were unchanged.

The lead from Wall Street is broadly negative as the major averages hugged the line for most of Wednesday's session but turned sharply lower after the FOMC decision.

The Dow plunged 505.44 points or 1.55 percent to finish at 32,147.76, while the NASDAQ tumbled 366.05 points or 3.36 percent to close at 10,524.80 and the S&P 500 slumped 96.41 points or 2.50 percent to end at 3,759.69.

The late-day volatility came after the Fed announced its widely expected decision to raise interest rates by another 75 basis points in an effort to rein in inflation.

The Fed noted that future rate hikes will "take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments."

But comments from Fed Chair Jerome Powell tamped down optimism about the outlook for interest rates: "It is very premature, in my view, to think about or be talking about pausing our rate hikes. We have a ways to go."

Crude oil prices climbed higher on Wednesday after data showed declines in crude and gasoline stockpiles in the U.S. last week. West Texas Intermediate Crude oil futures for December climbed $1.63 or 1.8 percent at $90.00 a barrel.