Rebound Predicted For Malaysia Stock Market

(RTTNews) - The Malaysia stock market turned lower again on Wednesday, one session after halting the eight-day losing streak in which it had lost more than 100 points or 6.9 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,460-point plateau although it figures to bounce higher again on Thursday.

The global forecast for the Asian markets is upbeat, with bargain hunting expected after brutal selling over the past week. The European and U.S. markets were up and the Asian bourses are predicted to follow suit.

The KLCI finished sharply lower on Wednesday following losses from the financials, plantations, telecoms and glove makers.

For the day, the index tumbled 22.23 points or 1.50 percent to finish at 1,459.05 after trading between 1,453.19 and 1,480.96. Volume was 2.426 billion shares worth 1.821 billion ringgit. There were 732 decliners and 231 gainers.

Among the actives, Axiata tanked 3.50 percent, while CIMB Group withdrew 0.58 percent, Dialog Group shed 1.40 percent, Digi.com dipped 0.92 percent, Genting sank 1.68 percent, Genting Malaysia stumbled 2.41 percent, Hartalega Holdings plummeted 5.99 percent, IHH Healthcare and Tenaga Nasional both dropped 1.75 percent, INARI skidded 1.88 percent, IOI Corporation was down 0.73 percent, Kuala Lumpur Kepong declined 2.83 percent, Maybank eased 0.58 percent, Maxis slipped 0.91 percent, MISC slid 0.98 percent, MRDIY surrendered 2.88 percent, Petronas Chemicals lost 1.35 percent, PPB Group cratered 1.87 percent, Press Metal retreated 2.81 percent, Public Bank gave away 0.67 percent, RHB Capital fell 1.20 percent, Sime Darby weakened 2.29 percent, Sime Darby Plantations plunged 3.97 percent, Telekom Malaysia tumbled 3.30 percent and Top Glove slumped 1.94 percent.

The lead from Wall Street is positive as the major averages opened solidly higher on Wednesday and remained in the green throughout the day, finishing near session highs.

The Dow climbed 303.70 points or 1.00 percent to finish at 30,668.53, while the NASDAQ surged 270.81 points or 2.50 percent to end at 11,099.15 and the S&P 500 jumped 54.51 points or 1.46 percent to close at 3,789.99.

The rally on Wall Street came even as the Federal Reserve announced the biggest increase in interest rates in almost 30 years. The Fed raised the target rate for the federal funds rate by 75 basis points to 1.50 to 1.75 percent, marking the biggest rate hike since 1994.

The widely expected move by the Fed comes as a recent report from the Labor Department showed consumer price inflation at the fastest annual rate in 40 years. Citing its goals of maximum employment and inflation at a rate of 2 percent over the longer run, the Fed also indicated that further rate hikes are likely to be appropriate.

In economic news, the Commerce Department noted an unexpected decrease in U.S. retail sales in May, while a separate report showed U.S. import prices increased by less than expected. Also, the National Association of Home Builders said homebuilder confidence fell to its lowest level since June 2020.

Crude oil prices slumped on Wednesday after data showed a jump in oil inventories in the U.S. last week, and the Federal Reserve hiked interest rates by a sharp 0.75 percent. West Texas Intermediate Crude oil futures dropped by $2.21 or 1.8 percent to $116.72 a barrel.