Renewed Support Predicted For Malaysia Shares

(RTTNews) - The Malaysia stock market on Tuesday snapped the two-day winning streak in which it had gathered almost a dozen points or 0.9 percent. The Kuala Lumpur Composite Index now rests just above the 1,380-point plateau although it's expected to bounce higher again on Wednesday.

The global forecast for the Asian markets is upbeat on growing optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

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

For the day, the index dipped 6.16 points or 0.44 percent to finish at 1,380.61 after trading between 1,378.15 and 1,387.79.

Among the actives, Axiata tumbled 1.87 percent, while Celcomdigi gained 0.52 percent, CIMB Group lost 0.60 percent, Dialog Group and Hong Leong Bank both advanced 0.96 percent, Genting was down 0.24 percent, Genting Malaysia slid 0.39 percent, IHH Healthcare skidded 0.86 percent, Inari surged 6.30 percent, IOI Corporation retreated 1.31 percent, Kuala Lumpur Kepong shed 0.64 percent, Maxis dropped 0.73 percent, Maybank eased 0.12 percent, MISC fell 0.56 percent, MRDIY added 0.63 percent, Petronas Chemicals plummeted 3.46 percent, PPB Group stumbled 1.48 percent, Public Bank slumped 1.04 percent, QL Resources jumped 1.31 percent, RHB Capital rose 0.19 percent, Sime Darby improved 0.50 percent, Sime Darby Plantations sank 0.69 percent, Tenaga Nasional declined 1.30 percent and Press Metal, Telekom Malaysia and Nestle Malaysia were unchanged.

The lead from Wall Street is solid as the major averages opened higher on Tuesday and remained firmly in the green throughout the session.

The Dow jumped 145.79 points or 0.43 percent to finish at 34,212.12. while the NASDAQ rallied 111.40 points or 0.83 percent to end at 13,573.32 and the S&P 500 gained 30.08 points or 0.69 percent to close at 4,369.01.

The continued strength on Wall Street came following the release of the Labor Department's highly anticipated report on consumer price inflation in the month of May, which showed prices edged slightly higher.

The data added to optimism about the Federal Reserve pausing its recent interest rate increases when the central bank announces its monetary policy decision later today.

Crude oil prices rose sharply on Tuesday after the People's Bank of China announced a surprise rate cut, and the dollar weakened after data showing a slowdown in U.S. inflation raised expectations the Fed will pause rate increases. West Texas Intermediate Crude oil futures for July ended higher by $2.30 or 3.4 percent at $69.42 a barrel.