Malaysia Stock Market Likely To Run Out Of Steam On Wednesday

(RTTNews) - The Malaysia stock market has moved higher in two straight sessions, collecting more than 20 points or 1.3 percent along the way. The Kuala Lumpur Composite Index new rests just above the 1,510-point plateau although it figures to spin its wheels on Wednesday.

The global forecast for the Asian markets is soft thanks to ongoing concerns over the economy and the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The KLCI finished modestly higher on Tuesday following gains from the plantations and telecoms, while the financials and glove makers were mixed.

For the day, the index improved 10.48 points or 0.70 percent to finish at the daily high of 1,512.05 after moving as low as 1,496.80. Volume was 2.864 billion shares worth 2.716 billion ringgit. There were 453 gainers and 406 decliners.

Among the actives, Axiata climbed 1.33 percent, while CIMB Group sank 0.56 percent, Dialog Group increased 1.25 percent, Digi.com advanced 1.30 percent, Genting Malaysia added 1.01 percent, Hartalega Holdings slumped 1.78 percent, IHH Healthcare tumbled 2.21 percent, INARI gained 0.74 percent, IOI Corporation strengthened 1.44 percent, Kuala Lumpur Kepong surged 3.58 percent, Maybank and Telekom Malaysia both collected 0.34 percent, MISC lost 0.28 percent, MRDIY spiked 3.33 percent, Petronas Chemicals dropped 1.12 percent, Petronas Dagangan skyrocketed 7.70 percent, PPB Group soared 3.53 percent, Press Metal improved 1.27 percent, Public Bank rallied 1.73 percent, RHB Capital skidded 1.20 percent, Sime Darby retreated 2.14 percent, Sime Darby Plantations jumped 1.59 percent, Tenaga Nasional accelerated 2.51 percent, Top Glove rose 0.62 percent and Genting and Maxis were unchanged.

The lead from Wall Street is negative as the major averages shook off early support on Tuesday, quickly heading south and remaining in the red for the rest of the session.

The Dow tumbled 308.12 points or 0.96 percent to finish at 31,790.87, while the NASDAQ dropped 134.53 points or 1.12 percent to close at 11,883.14 and the S&P 500 sank 44.45 points or 1.10 percent to end at 3,986.16.

The extended sell-off reflected lingering concerns about the outlook for interest rates and the impact further rate hikes will have on the economy.

Stocks have been under pressure since Federal Reserve Chair Jerome Powell said last Friday that the central bank plans to continue aggressively raising interest rates. Powell suggested that even after the Fed finishes tightening monetary policy, rates will remain at higher levels to ensure inflation remains contained.

In economic news, the Conference Board said that consumer confidence rebounded by more than expected in August. Also, the Labor Department said the number of job openings was little changed at 11.2 million on the last business day of July.

The price of crude oil showed a substantial move to the downside during trading on Tuesday amid concerns higher interest rates will lead to a global economic slowdown, reducing energy demand. West Texas Intermediate crude for October delivery plunged $5.37 or 5 percent to $91.64 a barrel.