The Malaysian stock market has experienced a rollercoaster ride over the last four trading days, alternating between gains and losses, following a two-day slide in which it dropped more than 10 points, or 0.6 percent. The Kuala Lumpur Composite Index is now just above the 1,545-point mark, and it's likely these losses could continue into Thursday.
Globally, Asian markets are treading carefully in anticipation of crucial U.S. inflation data coming out later today. With the European markets giving mixed signals, and the U.S. markets trending downwards, Asian markets seem poised to fall somewhere in between.
The KLCI, the market index for Malaysia, edged lower on Wednesday, with financial shares, plantation stocks, and telecoms taking the brunt of the losses. For the day, the index dipped 13.21 points or 0.85 percent, hitting a daily low of 1,545.59 after an early peak of 1,556.69.
Specifically, Axiata dropped 1.40 percent, while Celcomdigi and Petronas Dagangan both lost 0.69 percent. The CIMB Group decreased 0.31 percent, Genting took a significant hit of 1.84 percent, and Genting Malaysia sank 1.71 percent. IOI Corporation fell 0.50 percent, Kuala Lumpur Kepong slid 0.36 percent, Maxis was down 1.57 percent, and MISC rose 1.07 percent. MRDIY surrendered 1.87 percent, Petronas Chemicals declined 1.30 percent, and PPB Group inched up 0.13 percent. Press Metal, Public Bank, and QL Resources all saw losses, as did RHB Capital, Sime Darby Plantations, YTL Corporation, and YTL Power. Telekom Malaysia managed a small gain of 0.17 percent, and Tenaga Nasional experienced a substantial drop of 4.03 percent. Rates for IHH Healthcare, Maybank, and Sime Darby remain unchanged.
U.S. Wall Street trends suggest a negative outlook, as major averages opened significantly lower on Wednesday but recouped some losses throughout the day. The Dow fell 23.39 points or 0.06 percent, while the NASDAQ dropped 87.56 points or 0.55 percent, and the S&P 500 declined 8.42 points or 0.17 percent.
Traders on Wall Street were cashing in on recent market strength, especially with looming inflation data. With the U.S. Federal Reserve officials asserting they require evidence of slowing inflation before considering cutting interest rates, this data could materially affect rate forecasts.
On the economic front, it was reported that real gross domestic product growth in the fourth quarter was slightly downgraded to 3.2 percent from the previously reported 3.3 percent.
Oil prices also took a dip, with West Texas Intermediate Crude oil futures for April taking a hit of 33 cents or 0.42 percent following a larger than expected increase in U.S. crude inventories last week. The price finished at $78.54 a barrel.
