Malaysia Stock Market May Spin Its Wheels On Thursday

(RTTNews) - The Malaysia stock market has moved higher in back-to-back sessions, collecting more than 6 points or 0.4 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,395-point plateau although it's likely to run out of steam on Thursday.

The global forecast for the Asian markets is negative on renewed concerns over the outlook for interest rates. The European and U.S. markets were down and the Asian markets are expected to open in similar fashion.

The KLCI finished modestly higher on Wednesday as gains from the financials and telecoms were capped by losses from the plantations.

For the day, the index added 5.12 points or 0.37 percent to finish at 1,393.45 after trading between 1,383.88 and 1,395.85.

Among the actives, Axiata added 0.38 percent, while Celcomdigi retreated 1.65 percent, CIMB Group soared 2.14 percent, Dialog Group climbed 0.96 percent, Genting and Maxis both dipped 0.24 percent, Genting Malaysia sank 0.79 percent, IHH Healthcare tumbled 2.17 percent, IOI Corporation slid 0.27 percent, Kuala Lumpur Kepong shed 0.73 percent, Maybank rallied 1.04 percent, MISC eased 0.14 percent, MRDIY spiked 1.95 percent, Press Metal surged 2.59 percent, Public Bank collected 0.77 percent, Sime Darby skidded 0.97 percent, Sime Darby Plantations lost 0.47 percent, Telekom Malaysia jumped 1.20 percent, Tenaga Nasional fell 0.33 percent, Westports Holdings declined 1.11 percent and Petronas Chemicals, RHB Capital and PPB Group were unchanged.

The lead from Wall Street remains weak as the major averages opened lower again on Wednesday and largely stayed that way, ending near session lows.

The Dow dropped 102.35 points or 0.30 percent to finish at 33,951.52, while the NASDAQ tumbled 165.10 points or 1.21 percent to close at 13,502.20 and the S&P 500 shed 23.02 points or 0.52 percent to end at 4,365.69.

Renewed concerns about the outlook for interest rates contributed to the weakness on Wall Street following remarks by Federal Reserve Chair Jerome Powell.

In testimony before the House Financial Services Committee, Powell reiterated the Fed is likely to continue raising interest rates in an effort to contain stubbornly elevated inflation.

The Fed left rates unchanged last week, but the central bank's latest projections suggest it plans to resume raising rates later this year, forecasting a rate of 5.6 percent by the end of 2023. If the Fed decided to revert to its recent quarter-point increases, the forecast suggests the central bank will raise rates two more times this year.

Crude oil prices climbed higher on Wednesday amid hopes about the outlook for demand in the U.S. and forecasts for a drawdown in U.S. crude stocks last week. West Texas Intermediate Crude oil futures for August ended higher by $1.34 at $72.53 a barrel, recovering from a low of $70.80.