Renewed Support Anticipated For Malaysia Shares

(RTTNews) - The Malaysia stock market moved lower again on Monday, one session after ending the five-day losing streak in which it had slumped more than 25 points or 1.7 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,475-point plateau, although it's expected to rebound again on Tuesday.

The global forecast for the Asian markets is upbeat on bargain hunting and an improved outlook for interest rates. The European markets were down and the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.

The KLCI finished slightly lower on Monday as losses from the glove makers and telecoms were mitigated by support from the financials and mixed performances from the plantations.

For the day, the index dipped 2.81 points or 0.19 percent to finish at 1,474.38 after trading between 1,468.85 and 1,475.61.

Among the actives, Axiata plummeted 3.24 percent, while CIMB Group strengthened 1.59 percent, Dialog Group rallied 1.30 percent, Digi.com plunged 2.81 percent, Genting Malaysia tumbled 1.52 percent, Hartalega Holdings dropped 0.61 percent, IHH Healthcare retreated 1.33 percent, IOI Corporation shed 0.52 percent, Kuala Lumpur Kepong climbed 1.15 percent, Maybank collected 0.12 percent, MISC fell 0.14 percent, MRDIY skidded 0.97 percent, Petronas Chemicals sank 0.59 percent, PPB Group jumped 1.83 percent, Press Metal added 0.41 percent, Public Bank lost 0.23 percent, RHB Capital advanced 0.89 percent, Sime Darby Plantations rose 0.23 percent, Telekom Malaysia slumped 0.92 percent, Tenaga Nasional declined 1.39 percent, Top Glove tanked 1.79 percent and Genting, INARI, Maxis and Sime Darby were unchanged.

The lead from Wall Street is broadly positive as the major averages opened flat on Monday but accelerated as the day progressed, ending near session highs.

The Dow surged 528 points or 1.58 percent to finish at 34,005.04, while the NASDAQ rallied 139.12 points or 1.26 percent to end at 11,143.74 and the S&P 500 jumped 56.18 points or 1.43 percent to close at 3,990.56.

The rally on Wall Street came as traders picked up stocks at reduced levels following last week's notable decline.

Positive sentiment was also generated in reaction to a survey from the New York Federal Reserve showing inflation expectations decreased at the short, medium, and longer terms in November.

Traders also looked ahead to the Federal Reserve's highly anticipated monetary policy decision on Wednesday. While the Fed is widely expected to slow the pace of interest rate hikes to 50 basis points, traders have recently expressed concerns about how much further the Fed will need to raise rates in order to contain inflation.

Crude oil prices rose sharply Monday on supply concerns following the continued closure of a pipeline carrying Canadian heavy crude to the U.S. Gulf Coast of Mexico. West Texas Intermediate Crude oil futures for January ended higher by $2.15 or 3 percent at $73.17 a barrel.