Malaysia Stock Market Poised To Extend Tuesday's Losses

(RTTNews) - The Malaysia stock market on Tuesday ended the two-day winning streak in which it had collected more than 15 points or 1 percent. The Kuala Lumpur Composite Index now sits just beneath the 1,495-point plateau and the losses may accelerate on Wednesday.

The global forecast for the Asian markets is negative thanks to dwindling hopes for an interest rate cut in the near future. The European and U.S. markets were down and the Asian bourses figure to follow suit.

The KLCI finished modestly lower on Tuesday following losses from the power companies and mixed performances from the financials, telecoms and plantations.

For the day, the index shed 7.24 points or 0.48 percent to finish at 1,493.87 after trading between 1,492.40 and 1,503.73.

Among the actives, YTL Power plummeted 4.70 percent, while YTL Corporation plunged 4.58 percent, Axiata tanked 1.56 percent, QL Resources surrendered 1.36 percent, Genting tumbled 1.26 percent, Petronas Chemicals retreated 1.01 percent, IHH Healthcare declined 0.83 percent, Sime Darby slumped 0.82 percent, Maxis weakened 0.78 percent, Celcomdigi skidded 0.71 percent, MISC dropped 0.68 percent, Press Metal added 0.60 percent, IOI Corporation sank 0.50 percent, AMMB Holdings gained 0.47 percent, Sime Darby Plantations shed 0.45 percent, Tenaga Nasional lost 0.38 percent, Genting Malaysia fell 0.37 percent, RHB Bank slid 0.36 percent, Maybank dipped 0.22 percent, Telekom Malaysia and CIMB Group both rose 0.17 percent, Petronas Gas eased 0.11 percent and Mr. DIY, PPB Group, Public Bank and Kuala Lumpur Kepong were unchanged.

The lead from Wall Street is soft as the major averages opened lower on Tuesday and largely remained in the red throughout the trading day.

The Dow tumbled 231.86 points or 0.62 percent to finish at 37,361.12, while the NASDAQ shed 28.41 points or 0.19 percent to close at 14,944.35 and the S&P 500 sank 17.85 points or 0.37 percent to end at 4,765.98.

The weakness on Wall Street came was the result of higher Treasury yields and concerns that the Federal Reserve may not cut interest rates anytime soon.

In addition to digesting some hawkish comments from some central bank officials, investors also reacted to disappointing quarterly earnings updates from major companies such as Goldman Sachs and Morgan Stanley.

In economic news, the Federal Reserve Bank of New York reported that the Empire State Manufacturing Index plunged to -43.7 in January, the lowest reading since May 2020.

Oil futures settled lower on Tuesday as a stronger dollar and forecasts that weather in the U.S. will be warmer than normal weighed on oil prices. West Texas Intermediate Crude oil futures ended down $0.28 at $72.40 a barrel.