Malaysia Stock Market Predicted To Remain Rangebound

(RTTNews) - The Malaysia stock market has alternated between positive and negative finishes through the last four trading days since the end of the two-day slide in which it had fallen more than 10 points or 0.7 percent. The Kuala Lumpur Composite Index now rests just above the 1,420-point plateau although it's likely to rebound again on Thursday.

The global forecast for the Asian markets is positive, with oversold markets likely to rebound on possible easing inflation concerns. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The KLCI finished sharply lower on Wednesday following losses from the plantation stocks, glove makers and telecoms, while the financials were mixed.

For the day, the index sank down 19.96 points or 1.39 percent to finish at 1,420.85 after trading between 1,419.50 and 1,448.09. Volume was 2.161 billion shares worth 1.634 billion ringgit. There were 717 decliners and 208 gainers.

Among the actives, Axiata retreated 1.85 percent, while CIMB Group advanced 0.99 percent, Dialog Group surrendered 2.42 percent, Digi.com sank 0.86 percent, Genting shed 0.66 percent, Genting Malaysia weakened 1.40 percent, Hartalega Holdings declined 2.21 percent, IHH Healthcare and Maxis both dipped 0.31 percent, IOI Corporation skidded 1.05 percent, Kuala Lumpur Kepong plummeted 6.88 percent, Maybank rose 0.12 percent, MISC slid 0.43 percent, Petronas Chemicals plunged 5.15 percent, Petronas Gas added 0.49 percent, PPB Group tumbled 3.41 percent, Press Metal tanked 4.25 percent, Public Bank fell 0.45 percent, Sime Darby climbed 1.38 percent, Sime Darby Plantations cratered 10.09 percent, Telekom Malaysia slumped 1.71 percent, Tenaga Nasional dropped 1.00 percent, Top Glove lost 0.53 percent and MRDIY, INARI and RHB Capital were unchanged.

The lead from Wall Street is upbeat as the major averages hugged the unchanged line for most of Wednesday's trade before a late rally pushed them into the green.

The Dow climbed 69.86 points or 0.23 percent to finish at 31,037.68, while the NASDAQ added 39.61 points or 0.35 percent to close at 11,361.85 and the S&P 500 rose 13.69 points or 0.36 percent to end at 3,845.08.

The late rally on Wall Street followed the release of the latest batch of minutes from the Federal Reserve's latest monetary policy meeting, which showed the central bank remains committed to bringing down inflation.

The minutes also said participants continued to anticipate that ongoing increases in the target range for the federal funds would be appropriate to achieve the monetary policy committee's objectives; another 50 or 75-basis point move is expected in the July meeting.

Crude oil futures settled lower Wednesday amid concerns about outlook for energy demand due to a surge in Covid-19 cases in China and fears over a possible recession, while a strong greenback also weighed. West Texas Intermediate crude oil futures for August ended lower by $0.97 or 1 percent at $98.53 a barrel.