Malaysia Stock Market May Extend Tuesday's Losses

(RTTNews) - The Malaysia stock market on Tuesday snapped the three-day losing streak in which it had slumped more than 15 points or 1 percent. The Kuala Lumpur Composite Index now rests just shy of the 1,475-point plateau and the losses may accelerate on Wednesday.

The global forecast for the Asian markets suggests consolidation on geopolitical concerns and fears over the outlook for interest rates. The European and U.S. markets were solidly lower and the Asian bourses are tipped to follow suit.

The KLCI finished barely higher on Tuesday following gains from the plantations and mixed performances from the telecoms and financials.

For the day, the index perked 0.55 points or 0.04 percent to finish at 1,474.01 after trading between 1,471.85 and 1,477.36.

Among the actives, Axiata gained 0.32 percent, while CIMB Group and RHB Capital both collected 0.37 percent, Dialog Group tumbled 1.67 percent, Digi.com plummeted 3.80 percent, Genting rose 0.21 percent, Genting Malaysia dipped 0.36 percent, IHH Healthcare dropped 0.82 percent, INARI added 0.41 percent, IOI Corporation improved 0.53 percent, Kuala Lumpur Kepong rallied 1.42 percent, Maybank shed 0.46 percent, Maxis strengthened 1.46 percent, MISC perked 0.13 percent, MRDIY plunged 2.78 percent, Petronas Chemicals surged 1.95 percent, PPB Group lost 0.45 percent, Press Metal advanced 1.35 percent, Public Bank eased 0.24 percent, Sime Darby fell 0.43 percent, Sime Darby Plantations spiked 1.63 percent, Telekom Malaysia climbed 1.41 percent, Tenaga Nasional sank 0.61 percent and Hong Leong Bank was unchanged.

The lead from Wall Street is broadly negative as the major averages opened lower on Tuesday and saw the losses accelerate as the day progressed, ending near session lows.

The Dow plummeted 697.10 points or 2.06 percent to finish at 33,129.59, while the NASDAQ plunged 294.97 points or 2.50 percent to close at 11,492.30 and the S&P 500 tumbled 81.75 points or 2.00 percent to end at 3,997.34.

The sell-off on Wall Street reflected ongoing concerns about the outlook for interest rates amid a spike in treasury yields. The benchmark 10-year yield more than offset the dip seen last Friday, reaching its highest closing level in three months.

Recent economic data has also led to worries the Federal Reserve may raise rates higher than expected and keep them elevated for an extended period. Later today, the Fed will release minutes of its latest monetary policy meeting, which could shed some light on the outlook for interest rates.

Geopolitical concerns also weighed after Russian President Vladimir Putin said he is suspending Russia's participation in a nuclear arms treaty with the U.S. The announcement by Putin comes after U.S. President Joe Biden made a surprise visit to Ukraine's capital Kyiv on Monday.

Crude oil prices were volatile on Tuesday as traders weighed the impact of higher U.S. interest rates against optimism about increased demand from China. West Texas Intermediate for March delivery dipped $0.16 or 0.2 percent to $76.16 a barrel, while crude for April delivery eased $0.19 or 0.3 percent to $76.29 a barrel.