More Pain Predicted For Malaysia Stock Market

(RTTNews) - The Malaysia stock market has finished lower in three straight sessions, sinking more than 15 points or 1 percent in that span. The Kuala Lumpur Composite Index now sits just beneath the 1,525-point plateau and it may take further damage on Wednesday.

The global forecast for the Asian markets is flat to lower ahead of the FOMC rate decision scheduled for later today. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The KLCI finished modestly lower on Tuesday as losses from the financials, plantations and telecoms were mitigated by support from the industrials.

For the day, the index slipped 5.56 points or 0.36 percent to finish at the daily low of 1,523.82 after peaking at 1,537.62.

Among the actives, 99 Speed Mart Retail fell 0.43 percent, while AMMB Holdings advanced 0.98 percent, Axiata slid 0.37 percent, Celcomdigi dropped 0.79 percent, CIMB Group plunged 1.63 percent, Gamuda gained 0.77 percent, IHH Healthcare skidded 0.90 percent, IOI Corporation plummeted 2.85 percent, Kuala Lumpur Kepong stumbled 1.41 percent, Maxis tanked 1.43 percent, Maybank eased 0.21 percent, MISC lost 0.66 percent, Nestle Malaysia was down 0.23 percent, Petronas Chemicals surged 4.99 percent, Petronas Dagangan climbed 1.21 percent, Petronas Gas sank 0.78 percent, Press Metal soared 2.06 percent, Public Bank slumped 0.94 percent, QL Resources shed 0.70 percent, RHB Bank retreated 1.11 percent, SD Guthrie tumbled 1.23 percent, Sunway rallied 1.24 percent, Tenaga Nasional slipped 0.30 percent, YTL Corporation jumped 1.22 percent, YTL Power declined 0.96 percent and PPB Group, Sime Darby, Telekom Malaysia and MRDIY were unchanged.

The lead from Wall Street is soft as the major averages opened mixed on Tuesday but quickly turned lower, ending near session lows.

The Dow slumped 204.57 points or 0.46 percent to finish at 44,632.99, while the NASDAQ shed 80.29 points or 0.38 percent to close at 21,098.29 and the S&P 500 sank 18.91 points or 0.30 percent to end at 6,370.86.

The pullback on Wall Street may reflected profit taking following the upward trend seen over the past several sessions, which saw the NASDAQ and the S&P 500 reach new record highs.

Traders also seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy announcement later today. While the Fed is expected to leave interest rates unchanged, the announcement could impact the outlook for rates.

In economic news, the Conference Board released a report showing consumer confidence in the U.S. saw a modest improvement in July. Also, the Labor Department said job openings in the U.S. decreased by slightly less than expected in June.

Crude oil prices moved higher on Tuesday as the U.S. deadline for Russia to finalize an agreement with Ukraine or face sanctions draws nearer. West Texas Intermediate crude for September delivery was up $2.81 or 4.21 percent to $69.52 per barrel.