Bargain Hunting Likely To Lift Malaysia Stock Market

(RTTNews) - The Malaysia stock market has moved lower in five straight sessions, sinking almost 65 points or 4.6 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,390-point plateau although it's overdue for support on Wednesday.

The global forecast for the Asian markets is positive on bargain hunting and encouraging inflation data. The European and U.S. markets were sharply higher and the Asian bourses figure to follow that lead.

The KLCI finished sharply lower on Tuesday with heavy damage from the financial sector and additional downside among the plantations and telecoms.

For the day, the index sank 28.00 points or 1.97 percent to finish at the daily low of 1,393.83 after trading as high as 1,416.96.

Among the actives, Axiata stumbled 2.32 percent, while CIMB Group tanked 3.00 percent, Dialog Group surrendered 2.95 percent, Digi.com shed 0.97 percent, Genting tumbled 2.61 percent, Genting Malaysia weakened 1.90 percent, IHH Healthcare dropped 1.34 percent, INARI slipped 0.42 percent, IOI Corporation retreated 2.34 percent, Kuala Lumpur Kepong fell 0.68 percent, Maybank sank 1.18 percent, Maxis crashed 2.84 percent, MISC eased 0.14 percent, Petronas Chemicals slumped 2.11 percent, PPB Group was down 0.24 percent, Press Metal plummeted 3.82 percent, Public Bank plunged 3.62 percent, RHB Capital declined 2.49 percent, Sime Darby lost 0.93 percent, Sime Darby Plantations skidded 1.87 percent, Telekom Malaysia dipped 0.41 percent, Tenaga Nasional slid 0.54 percent and MRDIY was unchanged.

The lead from Wall Street is upbeat as the major averages opened sharply higher on Tuesday and remained in the green throughout the session.

The Dow jumped 336.26 points or 1.06 percent to finish at 32,155.40, while the NASDAQ rallied 239.31 points or 2.14 percent to end at 11,428.15 and the S&P 500 advanced 63.53 points or 1.65 percent to close at 3,919.29.

The strength on Wall Street was fueled by bargain hunting, particularly in the banking sector after regulators said there won't be a relapse of the financial crisis from 15 years ago.

Data showing a drop in U.S. consumer prices in February contributed significantly to the positive mood in the market, allaying fears of an accelerated rate hike from the Federal Reserve.

Crude oil prices fell sharply to a nine-week low on Tuesday amid concerns a fresh financial crisis following the collapse of Silicon Valley Bank and Signature Bank could significantly hurt demand. West Texas Intermediate Crude oil futures for April sank $3.47 or 4.7 percent at $71.33 a barrel.