Malaysia Stock Market Expected To Remain Rangebound

(RTTNews) - The Malaysia stock market has moved higher in two of three trading days since the end of the six-day losing streak in which it had tumbled more than 50 points or 3.4 percent. The Kuala Lumpur Composite Index new rests just above the 1,500-point plateau although it figures to head south again on Tuesday.

The global forecast for the Asian markets suggests consolidation on concerns for an economic slowdown and on the outlook for interest rates. The European and U.S. markets were down and the Asian bourses are tipped to open in similar fashion.

The KLCI finished slightly higher on Monday following gains from the financials and plantations, weakness from the telecoms and a mixed picture from the glove makers.

For the day, the index rose 1.28 points or 0.09 percent to finish at 1,501.57 after trading between 1,481.79 and 1,506.55. Volume was 1.94 billion shares worth 1.589 billion ringgit. There were 616 decliners and 278 gainers. Among the actives, Axiata retreated 0.99 percent, while CIMB Group tumbled 1.10 percent, Dialog Group climbed 0.42 percent, Digi.com slumped 0.53 percent, Genting shed 0.42 percent, Genting Malaysia lost 0.34 percent, Hartalega Holdings accelerated 1.20 percent, IHH Healthcare dropped 0.47 percent, INARI plunged 3.24 percent, Kuala Lumpur Kepong rose 0.18 percent, Maybank collected 0.34 percent, Maxis fell 0.26 percent, MISC improved 0.28 percent, MRDIY rallied 0.48 percent, Petronas Chemicals soared 2.42 percent, PPB Group spiked 1.31 percent, Press Metal jumped 0.43 percent, RHB Capital gathered 0.35 percent, Sime Darby sank 0.43 percent, Sime Darby Plantations surged 2.81 percent, Telekom Malaysia declined 0.83 percent, Tenaga Nasional perked 0.11 percent, Top Glove plummeted 3.61 percent and IOI Corporation and Public Bank were unchanged.

The lead from Wall Street is negative as the major averages opened sharply lower, staged a recovery midday but then faded into the close.

The Dow dropped 184.41 points or 0.57 percent to finish at 32,098.99, while the NASDAQ dropped 124.04 points or 1.02 percent to close at 12,017.67 and the S&P 500 lost 27.05 points or 0.67 percent end at 4,030.61.

Concerns about the outlook for interest rates continued to weigh on the markets following Federal Reserve Chair Jerome Powell's speech last week at the Jackson Hole economic symposium.

Powell's remarks were more hawkish than investors would have liked, signaling the Fed is likely to continue raising interest rates aggressively and maintain rates at a high level for an extended period. Trading activity remained somewhat subdued, however, as traders look ahead to Friday's closely watched monthly employment report - which also may help to determine the outlook for interest rates.

Crude oil prices moved sharply higher on Monday amid indications that OPEC will decrease production if a deal with Iran to lift sanctions comes to pass. Crude oil for October delivery surged $3.95 or 4 percent to $97.01 a barrel.