Malaysia Bourse May See Renewed Consolidation

(RTTNews) - The Malaysia stock market on Wednesday ended the two-day slide in which it had fallen almost 20 points or 1.2 percent. The Kuala Lumpur Composite Index now sits just beneath the 1,680-point plateau although it figures to head south again on Thursday.

The global forecast for the Asian markets is weak on further escalating tensions in the Middle East. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The KLCI finished slightly higher on Wednesday following gains from the financial shares and plantation stocks.

For the day, the index rose 3.46 points or 0.21 percent to finish at 1,678.96 after trading between 1,673.64 and 1,684.22. Among the actives, 99 Speed Mart Retail and RHB Bank both increased 0.60 percent, while AMMB Holdings climbed 0.77 percent, Celcomdigi lost 0.36 percent, CIMB Group gained 0.41 percent, Gamuda skidded 0.93 percent, IHH Healthcare fell 0.34 percent, IOI Corporation vaulted 1.42 percent, Kuala Lumpur Kepong spiked 1.79 percent, Maxis expanded 0.93 percent, Maybank collected 0.56 percent, MISC improved 0.61 percent, Nestle Malaysia dropped 0.70 percent, Petronas Chemicals rallied 2.39 percent, Petronas Dagangan rose 0.22 percent, Petronas Gas gathered 0.35 percent, PPB Group dipped 0.31 percent, Press Metal shed 0.67 percent, Public Bank advanced 0.63 percent, Sime Darby slumped 0.98 percent, SD Guthrie perked 0.17 percent, Sunway eased 0.19 percent, Sunway Healthcare jumped 1.71 percent, Telekom Malaysia sank 0.69 percent, Tenaga Nasional added 0.57 percent, YTL Corporation tumbled 1.98 percent, YTL Power retreated 1.73 percent and Axiata and MRDIY were unchanged.

The lead from Wall Street is broadly negative as the major averages opened lower and continued trend deeper into the red as the day progressed, ending at session lows.

The Dow tumbled 953.33 points or 1.87 percent to finish at 49,918.78, while the NASDAQ tanked 509.32 points or 1.98 percent to end at 25,169.50 and the S&P 500 slumped 119.66 points or 1.62 percent.

The weakness that emerged on Wall Street came as President Donald Trump ramped up his threats against Iran following a recent exchange of attacks.

Trump's latest threats came after U.S. Central Command said forces completed "self-defense strikes" against Iran on Tuesday at the president's direction in response to the downing of a U.S. helicopter.

In economic news, the Labor Department reported that consumer prices in the U.S. increased in line with estimates in May. Core consumer price growth also matches expectations.

Crude oil prices surged Wednesday on concerns about the gulf conflict intensifying further after the U.S. and Iran resumed attacks, keeping the Strait of Hormuz closed. West Texas Intermediate crude for July delivery was up $2.26 or 2.56 percent at $90.46 per barrel.

Closer to home, Malaysia will see unemployment numbers for April later today; in March, the jobless rate was 2.9 percent.