Lower Open Predicted For Malaysia Stock Market

(RTTNews) - The Malaysia stock market on Tuesday ended the three-day losing streak in which it had slipped more than 15 points or 0.9 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,630-point plateau although it may see renewed selling pressure on Wednesday.

The global forecast for the Asian markets is negative on renewed concerns about the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The KLCI finished slightly higher on Tuesday as gains from the finance, construction and plantation stocks were capped by weakness from the telecoms.

For the day, the index added 4.32 points or 0.27 percent to finish at 1,629.79 after trading between 1,624.50 and 1,634.27.

Among the actives, 99 Speed Mart Retail stumbled 1.65 percent, while Axiata plunged 2.49 percent, Celcomdigi was up 0.27 percent, CIMB Group rallied 0.87 percent, Gamuda skyrocketed 7.00 percent, IHH Healthcare slumped 0.96 percent, Kuala Lumpur Kepong and YTL Corporation both added 0.37 percent, Maybank collected 0.59 percent, MISC sank 0.66 percent, Nestle Malaysia dropped 0.70 percent, Petronas Chemicals improved 0.41 percent, Petronas Gas eased 0.11 percent, Press Metal declined 1.24 percent, QL Resources fell 0.43 percent, RHB Bank rose 0.16 percent, Sime Darby retreated 1.29 percent, SD Guthrie soared 2.64 percent, Sunway surged 2.78 percent, Telekom Malaysia lost 0.61 percent, Tenaga Nasional tumbled 1.78 percent, YTL Power spiked 1.35 percent and IOI Corporation, PPB Group, Maxis, MRDIY and Public Bank were unchanged.

The lead from Wall Street is bleak as the major averages opened slightly higher on Tuesday but quickly turned lower and finished deep in the red.

The Dow stumbled 178.20 points or 0.42 percent to finish at 42,528.36, while the NASDAQ plummeted 375.30 points or 1.89 percent to close at 19,489.68 and the S&P 500 sank 66.35 points or 1.11 percent to end at 5,909.03.

The sharp pullback by stocks came amid a notable increase by treasury yields, with the yield on the benchmark 10-year note surging to its highest closing level in eight months.

The jump by treasury yields, which led to concerns about the outlook for interest rates, came following the release of some upbeat U.S. economic data.

The Institute for Supply Management said U.S. service sector activity increased more than expected in December. The report also said the prices index surged to a one-year high, leading to concerns that inflation will remain sticky. Also, the Labor Department said job openings in the U.S. unexpectedly increased in November.

Oil prices climbed higher Tuesday amid a possible supply shortage after China decided to reject imports from Iran and Russia, while unusually cold weather in the U.S. also contributed to the rise in oil prices. West Texas Intermediate Crude oil futures for February closed up $0.69 or 0.94 percent at $74.25 a barrel.