Malaysia Stock Market May Take Additional Damage On Wednesday

(RTTNews) - The Malaysia stock market on Tuesday halted the four-day winning streak in which it had jumped almost 40 points or 2.8 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,465-point plateau and it may extend its losses on Wednesday.

The global forecast for the Asian markets is negative, with weakness expected especially from the oil and technology stocks ahead of the FOMC rate decision later today. The European and U.S. markets were down and the Asian markets are predicted to follow that lead.

The KLCI finished modestly lower on Tuesday following losses from the financial shares and glove makers, while the plantations and telecoms were mixed.

For the day, the index slipped 5.53 points or 0.38 percent to finish at 1,463.69 after trading between 1,459.12 and 1,466.49. Volume was 2.411 billion shares worth 1.222 billion ringgit. There were 409 decliners and 390 gainers.

Among the actives, CIMB Group lost 0.38 percent, while Dialog Group sank 0.48 percent, Digi.com plummeted 3.42 percent, Genting skidded 0.63 percent, Genting Malaysia slid 0.34 percent, Hartalega Holdings tumbled 1.07 percent, IHH Healthcare dipped 0.31 percent, INARI fell 0.37 percent, IOI Corporation improved 0.75 percent, Kuala Lumpur Kepong slumped 0.73 percent, Maybank eased 0.11 percent, Maxis plunged 2.87 percent, MISC climbed 1.43 percent, MRDIY advanced 0.93 percent, Petronas Chemicals was down 0.23 percent, Press Metal gained 0.45 percent, Public Bank shed 0.43 percent, RHB Capital and Tenaga Nasional both retreated 0.86 percent, Sime Darby Plantations tanked 1.18 percent, Telekom Malaysia added 0.72 percent, Top Glove dropped 0.50 percent and Axiata, Sime Darby and PPB Group were unchanged.

The lead from Wall Street is soft as the major averages opened lower on Tuesday and remained in the red throughout the day, ending near session lows.

The Dow tumbled 228.50 points or 0.71 percent to finish at 31,761.54, while the NASDAQ plunged 220.09 points or 1.87 percent to close at 11,562.57 and the S&P 500 dropped 45.79 points or 1.15 percent to end at 3,921.05.

The weakness on Wall Street also came as traders looked ahead to the Federal Reserve's monetary policy announcement later today. The Fed is widely expected to announce another 75 basis point rate hike as part of its efforts to combat elevated inflation.

In corporate news, Walmart came under pressure after lowering its guidance for the second quarter and full year due to pricing actions aimed to improve inventory levels. Auto giant General Motors (GM) also moved to the downside after reporting Q2 earnings that missed estimates.

In U.S. economic news, the Commerce Department said new home sales pulled back by more than expected in June. Also, the Conference Board said consumer confidence in the U.S. deteriorated by more than expected in of July.

Crude oil prices fell on Tuesday, weighed by an announcement from the Biden administration about more sales from the national oil reserve to fight inflation at the pump. The dollar's rebound from recent losses also contributed the drop in oil prices. West Texas Intermediate Crude oil futures for September ended lower by $1.72 or 1.8 percent at $94.98 a barrel.