Renewed Support Called For Malaysia Stock Market

(RTTNews) - The Malaysia stock market on Wednesday ended the five-day winning streak in which it had advanced more than 35 points or 2.2 percent. The Kuala Lumpur Composite Index now sits just above the 1,485-point plateau although it's expected to bounce higher again on Thursday.

The global forecast for the Asian markets is cautiously ahead of key U.S. inflation data later this week, which will affect the outlook for interest rates. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The KLCI finished modestly lower on Wednesday following losses from the financial shares, telecoms and plantations.

For the day, the index sank 11.97 points or 0.80 percent to finish at 1,486.86 after trading between 1,486.72 and 1,497.80.

Among the actives, Celcomdigi lost 0.24 percent, while CIMB Group plunged 1.65 percent, Genting skidded 0.61 percent, Genting Malaysia tumbled 1.04 percent, IHH Healthcare fell 0.16 percent, IOI Corporation slumped 0.75 percent, Kuala Lumpur Kepong eased 0.09 percent, Maxis shed 0.26 percent, Maybank surrendered 1.10 percent, MISC and Sime Darby Plantations both weakened 0.68 percent, Petronas Chemicals tanked 1.41 percent, PPB Group rose 0.27 percent, Press Metal added 0.62 percent, Public Bank plummeted 1.82 percent, RHB Capital sank 0.54 percent, Sime Darby gained 0.41 percent, Telekom Malaysia stumbled 0.70 percent, Tenaga Nasional declined 0.76 percent, YTL Corporation retreated 0.88 percent, YTL Power dropped 0.59 percent and Axiata and MRDIY were unchanged.

The lead from Wall Street is positive as the major averages opened slightly higher on Wednesday and accelerated throughout the session.

The Dow jumped 170.57 points or 0.45 percent to finish at 37,695.73, while the NASDAQ rallied 111.94 points or 0.75 percent to end at 14,969.65 and the S&P 500 gained 26.95 points or 0.57 percent to close at 4,783.45.

The strength on Wall Street may have reflected optimism ahead of the release of key U.S. inflation data in the comings days.

The Labor Department's reports on consumer and producer price inflation, which are due to be released on Thursday and Friday, respectively, could have a significant impact on the outlook for interest rates.

With economists expecting the reports to show slowdowns in the annual rate of core price growth, the data could bolster optimism about near-term rate cuts by the Federal Reserve.

Crude oil prices dropped on Wednesday after data showed an unexpected increase in U.S. crude inventories. West Texas Intermediate Crude oil futures for February delivery ended down $0.87 at $71.37 a barrel.