Renewed Selling Pressure Expected For Malaysia Shares

(RTTNews) - The Malaysia stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day winning streak in which it had gained almost 15 points or 1 percent. The Kuala Lumpur Composite Index now sits just beneath the 1,525-point plateau and it's likely to head south again on Thursday.

The global forecast for the overbought Asian markets is weak, with profit taking expected. The European and U.S. markets were mostly lower, and the Asian bourses are expected to follow that lead.

The KLCI finished modestly higher on Wednesday following gains from the financial shares and mixed performances from the plantations and telecoms.

For the day, the index added 6.89 points or 0.45 percent to finish at 1,523.84 after trading between 1,520.86 and 1,530.85.

Among the actives, 99 Speed Mart Retail retreated 1.37 percent, while Axiata spiked 1.44 percent, Celcomdigi slumped 0.53 percent, CIMB Group advanced 0.73 percent, Gamuda rallied 1.28 percent, IHH Healthcare dropped 0.44 percent, IOI Corporation rose 0.28 percent, Kuala Lumpur Kepong stumbled 2.20 percent, Maxis lost 0.28 percent, Maybank collected 0.41 percent, MISC strengthened 0.92 percent, Nestle Malaysia climbed 0.75 percent, Petronas Chemicals sank 0.30 percent, Petronas Gas tanked 2.21 percent, PPB Group tumbled 1.63 percent, Public Bank jumped 1.17 percent, QL Resources declined 1.32 percent, Sime Darby gained 0.56 percent, SD Guthrie soared 1.77 percent, Sunway added 0.62 percent, Telekom Malaysia fell 0.15 percent, YTL Corporation skyrocketed 7.92 percent, YTL Power surged 3.99 percent and Press Metal, RHB Bank, Tenaga Nasional, MRDIY and Hong Leong Bank were unchanged.

The lead from Wall Street is soft as the major averages spent most of the day in positive territory before a late swoon sent them all into the red.

The Dow dipped 1.10 points or 0.00 percent to finish at 42,865.77, while the NASDAQ dropped 99.11 points or 0.50 percent to close at 19,615.88 and the S&P 500 sank 16.57 points or 0.27 percent to end at 6,022.24.

The downturn on Wall Street reflected profit taking after the early advance lifted the major averages to their best intraday levels in over three months.

The early strength in the markets followed the release of a closely watched Labor Department report showing U.S. consumer prices increased by slightly less than expected in the month of May.

Buying interest was also generated after U.S. and Chinese officials announced an agreement in principle on a framework to ease trade disputes between the two economic superpowers.

Crude oil prices surged on Wednesday amid the trade talks between the U.S. and China, as well as a fresh stand-off between the U.S. and Iran over a nuclear deal. West Texas Intermediate crude for July delivery closed up by $3.32 or 5.11 percent to settle at $68.30 per barrel.