Malaysia Bourse May Run Out Of Steam On Wednesday

(RTTNews) - The Malaysia stock market has moved higher in back-to-back sessions, collecting almost 20 points or 1.1 percent along the way. The Kuala Lumpur Composite Index now sits just beneath the 1,750-point plateau although the rally may stall on Wednesday.

The global forecast for the Asian markets is negative, with technology stocks expected to lead the markets lower. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The KLCI finished modestly higher on Tuesday following gains from the plantation and telecom stocks and mixed performances from the financials and industrials.

For the day, the index added 7.38 points or 0.42 percent to finish at 1,748.26 after trading between 1,742.68 and 1,757.51. Among the actives, 99 Speed Mart Retail stumbled 2.50 percent, while AMMB Holdings jumped 1.86 percent, Axiata surged 7.39 percent, Celcomdigi sank 0.61 percent, CIMB Group fell 0.23 percent, Gamuda plummeted 6.33 percent, IHH Healthcare dropped 0.89 percent, IOI Corporation rose 0.50 percent, Kuala Lumpur Kepong improved 1.23 percent, Maxis spiked 2.09 percent, Maybank collected 1.19 percent, MISC expanded 1.63 percent, MRDIY tumbled 2.19 percent, Nestle Malaysia perked 0.18 percent, Petronas Chemicals and YTL Power both climbed 1.55 percent, Petronas Dagangan plunged 4.15 percent, Petronas Gas added 0.87 percent, PPB Group retreated 1.77 percent, Press Metal soared 2.12 percent, Public Bank vaulted 1.64 percent, QL Resources slumped 0.50 percent, RHB Bank tanked 3.55 percent, SD Guthrie increased 1.03 percent, Sunway gained 0.69 percent, Telekom Malaysia rallied 1.77 percent, Tenaga Nasional advanced 1.29 percent and Sime Darby and YTL Corporation were unchanged.

The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower and spent the rest of the day largely under water.

The Dow dropped 166.67 points or 0.34 percent to finish at 49,240.99, while the NASDAQ tumbled 336.92 points or 1.43 percent to close at 23,255.19 and the S&P 500 sank 58.63 points or 0.84 percent to end at 6,917.81.

The weakness on Wall Street was largely due to a rotation out of technology stocks, as reflected by the steep drop by the NASDAQ.

The U.S. Software Index slumped to its lowest closing level in over nine months, while substantial weakness was also visible among semiconductor stocks.

Gold stocks also saw considerable strength amid a significant rebound by the price of the precious metal. Steel, energy and housing stocks also moved notably higher on the day, helping to limit the downside for the broader markets.

Crude oil prices surged on Tuesday as the U.S. dollar index moved lower, while news of the U.S.-India trade agreement has led to anticipation of a spur in energy demand. West Texas Intermediate crude for March delivery was up $1.10 or 1.77 percent at $63.24 per barrel.