(RTTNews) – The Malaysia stock market has finished lower in back-to-back trading days, sinking almost 25 points or 1.6 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,490-point plateau although it may find traction on Thursday.
The global forecast for the Asian markets suggests a higher open on renewed stimulus hopes, although some of the overbought bourses may see profit taking as the day progresses. The European markets were mixed and the U.S. bourses were firmly higher and the Asian markets figure to split the difference.
The KLCI finished sharply lower on Wednesday following losses from the financials, plantations and rubber glove makers.
For the day, the index dropped 19.91 points or 1.32 percent to finish at the daily low of 1,489.56 after peaking at 1,510.35. Volume was 5.249 billion shares worth 3.608 billion ringgit. There were 636 gainers and 373 decliners.
Among the actives, Petronas Chemicals plummeted 5.00 percent, while Malaysia Airports Holdings plunged 4.14 percent, MISC tanked 2.95 percent, Tenaga Nasional tumbled 2.85 percent, IOI Corporation skidded 2.73 percent, Axiata retreated 2.70 percent, Sime Darby Plantations and IHH Healthcare both declined 2.59 percent, Sime Darby jumped 2.58 percent, Top Glove rallied 1.85 percent, AMMB Holdings surrendered 1.68 percent, Public Bank sank 1.64 percent, PPB Group dropped 1.60 percent, RHB Capital shed 1.54 percent, Maybank lost 1.25 percent, Genting fell 0.94 percent, Dialog Group slid 0.79 percent, Hartalega Holdings dipped 0.71 percent, CIMB Group slipped 0.66 percent, Kuala Lumpur Kepong weakened 0.62 percent, Genting Malaysia was down 0.49 percent, Maxis eased 0.20 percent and Digi.com was unchanged.
The lead from Wall Street is broadly positive as stocks opened higher on Monday and stayed that way throughout the session, offsetting losses from the previous day.
The Dow spiked 530.70 points or 1.91 percent to finish at 28,303.46, while the NASDAQ jumped 210.00 points or 1.88 percent to end at 11,364.60 and the S&P 500 rallied 58.49 points or 1.74 percent to close at 3,419.44.
The rebound on Wall Street comes after President Donald Trump indicated he would support individual stimulus measures after calling off negotiations over a broader relief package.
Trump’s tweet that he would end negotiations on a new fiscal stimulus package sent shivers through the markets on Tuesday and triggered the sell-off.
Crude oil prices drifted lower on Wednesday on stimulus concerns and after data showed an increase in crude stockpiles last week. West Texas Intermediate Crude oil futures for November ended up $1.45 or 3.7 percent at $40.67 a barrel.
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