Lower Open Anticipated For Malaysia Stock Market

(RTTNews) - The Malaysia stock market has finished lower in three straight sessions, dropping more than 35 points or 2.4 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,385-point plateau and it's expected to open in the red again on Wednesday.

The global forecast for the Asian markets is mixed to lower, with a dose of volatility as bargain hunting may give the oversold bourses a lift - but the gains may evaporate as the day progresses. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The KLCI finished sharply lower on Tuesday following losses from the financial shares, plantation stocks, glove makers and telecoms.

For the day, the index slumped 19.18 points or 1.36 percent to finish at 1,386.82 after trading between 1,383.25 and 1,400.58. Volume was 2.349 billion shares worth 1.859 billion ringgit. There were 786 decliners and 197 gainers.

Among the actives, Axiata retreated 2.64 percent, while CIMB Group gained 0.76 percent, Dialog Group tumbled 3.06 percent, Digi.com shed 1.45 percent, Genting sank 1.56 percent, Genting Malaysia slumped 2.54 percent, Hartalega Holdings fell 1.18 percent, IHH Healthcare skidded 1.91 percent, INARI plummeted 3.89 percent, IOI Corporation dropped 1.87 percent, Kuala Lumpur Kepong surrendered 2.94 percent, Maybank stumbled 2.43 percent, Maxis declined 2.83 percent, MISC slipped 0.57 percent, MRDIY slid 1.01 percent, Petronas Chemicals rose 0.23 percent, PPB Group fell 0.25 percent, Press Metal plunged 3.68 percent, Public Bank lost 1.41 percent, RHB Capital eased 0.36 percent, Sime Darby weakened 2.29 percent, Sime Darby Plantations was down 0.50 percent, Telekom Malaysia climbed 1.16 percent, Tenaga Nasional dipped 0.86 percent and Top Glove tanked 3.10 percent.

The lead from Wall Street ends up weak as the major averages saw considerable volatility on Tuesday, opening lower before rallying and then handing back the gains to finish mixed.

The Dow rose 36.31 points or 0.12 percent to finish at 29,239.19, while the NASDAQ tumbled 115.91 points or 1.10 percent to end at 10,426.19 and the S&P 500 sank 23.55 points or 0.65 percent to close at 3,588.84.

The early weakness on Wall Street was due to concerns about rising interest rates and the impact of high borrowing costs on corporate earnings and economic growth. A downward revision in the global economic growth forecast by the International Monetary Fund also weighed.

The markets rebounded when treasury yields ticked lower, but stocks faltered past mid-afternoon after the Bank of England said that its market intervention will be over soon.

Oil futures fell on Tuesday, extending losses from the previous session on concerns about outlook for energy demand amid the rising possibility of a global recession. A surge in COVID-19 cases in China and fears of further monetary policy tightening also weighed. West Texas Intermediate Crude oil futures for November sank $1.78 or 2 percent at $89.35 a barrel.