Continued Consolidation Called For Malaysia Stock Market

(RTTNews) - The Malaysia stock market has alternated between positive and negative finishes through the last four trading days since the end of the three-day losing streak in which it had slipped more than 20 points or 1.3 percent. The Kuala Lumpur Composite Index now sits just above the 1,525-point plateau and it may take further damage on Wednesday.

The global forecast for the Asian markets is soft, with weakness expected from the oil, finance and property stocks, while the technology companies may offer support. The European markets were down and the U.S. bourses were also mostly soft and the Asian market figure to open in the red.

The KLCI finished modestly lower on Tuesday following losses from the financial shares and the telecoms.

For the day, the index sank 12.11 points or 0.79 percent to finish at 1,525.40 after trading between 1,525.40 and 1,538.56.

Among the actives, 99 Speed Mart Retail rallied 1.32 percent, while Axiata surrendered 1.57 percent, Celcomdigi dipped 0.26 percent, CIMB Group retreated 0.90 percent, Gamuda plummeted 2.55 percent, IHH Healthcare eased 0.15 percent, Maxis slipped 0.28 percent, Maybank and YTL Power both skidded 0.72 percent, MISC lost 0.40 percent, MRDIY plunged 2.38 percent, Nestle Malaysia slid 0.31 percent, Petronas Chemicals dropped 0.62 percent, Petronas Dagangan slumped 0.83 percent, PPB Group weakened 0.79 percent, Press Metal and AMMB Holdings both fell 0.39 percent, Public Bank tanked 1.84 percent, QL Resources stumbled 1.52 percent, RHB Bank was down 0.16 percent, Sime Darby jumped 1.19 percent, SD Guthrie declined 0.84 percent, Sunway gained 0.82 percent, Telekom Malaysia contracted 0.74 percent, Tenaga Nasional sank 0.57 percent, YTL Corporation shed 0.41 percent and IOI Corporation, Kuala Lumpur Kepong and Petronas Gas were unchanged.

The lead from Wall Street is weak as the major averages opened mixed on Tuesday and trended generally lower, remaining mixed at the close.

The Dow tumbled 436.36 points or 0.98 percent to finish at 44,023.29, while the NASDAQ gained 37.47 points or 0.18 percent to close at a record 20,677.80 and the S&P 500 sank 24,80 points or 0.40 percent to end at 6,243.76.

The uptick by the NASDAQ came amid strength in the semiconductor stocks, as reflected by the 1.3 percent gain posted by the Philadelphia Semiconductor Index. The index ended the session at its best closing level in a year.

Nvidia (NVDA) helped lead the sector higher, with the AI darling surging by 4.0 percent to a record closing high after indicating it will "soon" resume H20 AI chip sales to China.

On the other hand, housing stocks moved sharply lower on the day, resulting in a 3.3 percent plunge by the Philadelphia Housing Sector Index. Oil service stocks also slumped amid a decrease by the price of crude oil, dragging the Philadelphia Oil Service Index down by 3.1 percent.

Crude oil price fell modestly on Tuesday as the previously predicted supply-side pressure from Russia due to President Donald Trump's sanctions waned with his 50-day ultimatum. West Texas Intermediate crude for August delivery closed down by $0.46 at $66.52 per barrel.