Malaysia Shares May Bounce Higher Again On Wednesday

(RTTNews) - The Malaysia stock market headed south again on Tuesday, one day after ending the two-day slide in which it had slipped more than 5 points or 0.3 percent. The Kuala Lumpur Composite Index now sits just above the 1,610-point plateau and it's tipped to see renewed support on Wednesday.

The global forecast for the Asian markets is positive on an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The KLCI finished modestly lower on Tuesday following mixed performances from the financial shares, plantations and industrials, while the telecoms offered support.

For the day, the index fell 7.04 points or 0.43 percent to finish at 1,611.74 after trading between 1,611.25 and 1,620.99. Among the actives, 99 Speed Mart Retail tanked 4.31 percent, while AMMB Holdings dipped 0.17 percent, Axiata and YTL Power both climbed 1.12 percent, Celcomdigi sank 0.59 percent, Gamuda slumped 1.47 percent, IHH Healthcare shed 0.50 percent, IOI Corporation fell 0.24 percent, Kuala Lumpur Kepong jumped 1.54 percent, Maxis plummeted 5.96 percent, Maybank collected 0.20 percent, MISC tumbled 2.05 percent, MRDIY plunged 5.45 percent, Nestle Malaysia declined 1.79 percent, Petronas Chemicals surge 2.74 percent, Petronas Dagangan retreated 1.81 percent, Petronas Gas contracted 1.20 percent, PPB Group advanced 0.73 percent, Press Metal eased 0.15 percent, QL Resources and Sime Darby both stumbled 2.51 percent, RHB Bank lost 0.29 percent, SD Guthrie rose 0.19 percent, Sunway skidded 1.25 percent, Telekom Malaysia rallied 1.24 percent, Tenaga Nasional added 0.46 percent, YTL Corporation dropped 0.87 percent and CIMB Group and Public Bank were unchanged.

The lead from Wall Street is upbeat as the major averages opened mixed on Tuesday but then trended to the upside throughout the session, ending near daily highs.

The Dow surged 664.18 points or 1.43 percent to finish at 47,112.45, while the NASDAQ added 153.59 points or 0.67 percent to end at 23,025.59 and the S&P 500 climbed 60.76 points or 0.91 percent to close at 6,765.88.

The strength that emerged on Wall Street reflected renewed optimism about the outlook for interest rates following recent dovish comments from Federal Reserve officials as well as the latest U.S. economic data.

The Commerce Department said retail sales in the U.S. increased less than expected in September, while the Conference Board also released a report showing a substantial deterioration by U.S. consumer confidence in November.

Payroll processor ADP released a report showing U.S. private sector employers shed an average of 13,500 jobs per week in the four weeks ending November 8th compared to an average loss of 2,500 jobs in the previous four-week period.

CME Group's FedWatch Tool indicates the chances the Fed will cut interest rates by another quarter point next month have surged to 82.7 percent from 50.1 percent a week ago.

Crude oil prices slumped on Tuesday on reports that a revised Russia-Ukraine peace plan has been accepted by Ukraine. West Texas Intermediate crude for January delivery was down $0.96 or 1.61 percent at $57.89 per barrel.