Malaysia Stock Market May Test Support At 1,400 Points

(RTTNews) - The Malaysia stock market has finished lower in back-to-back sessions, sinking more than 15 points or 1 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,410-point plateau and it may take further damage on Wednesday.

The global forecast for the Asian markets remains soft on increasing concerns over the Republican-manufactured U.S. debt ceiling confrontation. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The KLCI finished modestly lower on Tuesday following losses from the plantations and industrials, while the financials and telecoms were mixed.

For the day, the index shed 7.46 points or 0.53 percent to finish at 1,411.54 after trading between 1,409.51 and 1,419.61.

Among the actives, Axiata slipped 0.33 percent, while CIMB Group skidded 0.79 percent, Dialog Group added 0.47 percent, Celcomdigi lost 0.45 percent, Genting rallied 0.45 percent, Genting Malaysia slid 0.37 percent, IHH Healthcare and Public Bank both tumbled 1.01 percent, INARI plummeted 2.71 percent, IOI Corporation and Petronas Chemicals both declined 1.00 percent, Kuala Lumpur Kepong and Sime Darby Plantations both retreated 0.88 percent, Maxis sank 0.48 percent, Maybank collected 0.35 percent, MISC dropped 0.68 percent, MRDIY advanced 0.63 percent, Press Metal plunged 1.26 percent, RHB Capital rose 0.18 percent, Sime Darby shed 0.47 percent, Telekom Malaysia eased 0.20 percent, Tenaga Nasional fell 0.42 percent and PPB Group was unchanged.

The lead from Wall Street suggests consolidation as the major averages opened lower on Tuesday and spent much of the day hugging the line before slumping in the afternoon.

The Dow tumbled 231.07 points or 0.69 percent to finish at 33,055.51, while the NASDAQ sank 160.53 points or 1.26 percent to end at 12,560.25 and the S&P 500 dropped 47.05 points or 1.12 percent to close at 4,145.58.

The markets continue to be weighed by the debt ceiling negotiations. U.S. President Joe Biden and House Speaker Kevin McCarthy said they held productive talks but there was no agreement on how to raise the government's $31.4 trillion debt ceiling.

In economic news, the S&P Global US Composite PMI accelerated to its fastest pace in more than a year, while the Commerce Department said new home sales surprised much higher to the upside.

Crude oil futures advanced on speculation that OPEC might consider another production cut next month, and on a warning from Saudi Arabia's energy minister that oil prices will stop declining. West Texas Intermediate Crude oil futures for July rose $0.86 or 1.2 percent at $72.91 a barrel.