The Malaysian stock market has experienced a decline for four consecutive trading days, losing nearly 25 points or 1.6 percent in total. The Kuala Lumpur Composite Index (KLCI) currently hovers just above the 1,605-point mark and is expected to face further pressure on Thursday.
Globally, the forecast for Asian markets is pessimistic due to concerns over rising treasury yields and the outlook for interest rates. Both European and U.S. markets witnessed downturns, setting a negative precedent likely to be mirrored by Asian markets.
On Wednesday, the KLCI ended modestly lower as financial, plantation, and telecommunications stocks posted losses. Specifically, the index dropped by 10.47 points or 0.65 percent, closing at its daily low of 1,605.35, after reaching a peak of 1,614.71.
Notable market movements included Axiata, which fell by 3.52 percent, and Celcomdigi, which declined by 3.50 percent. CIMB Group slipped 0.58 percent, Genting decreased by 1.24 percent, and Genting Malaysia declined by 0.72 percent. IHH Healthcare and Nestle Malaysia each saw slight declines of 0.16 percent, while IOI Corporation retreated by 1.53 percent. Kuala Lumpur Kepong dropped by 2.82 percent, and Maxis sank by 0.82 percent. Maybank skidded 0.90 percent, MISC decreased by 0.84 percent, and MRDIY saw a slight rally of 1.10 percent. Petronas Chemicals stumbled 1.03 percent, PPB Group lost 0.67 percent, and Press Metal dipped 0.37 percent. Public Bank weakened by 0.97 percent, QL Resources slumped 0.93 percent, and RHB Capital dropped 0.36 percent. Sime Darby fell by 2.10 percent, while Sime Darby Plantations tumbled 2.08 percent. Telekom Malaysia fell 0.62 percent, Tenaga Nasional slipped 0.45 percent, and YTL Corporation soared 4.07 percent with YTL Power surging by 5.00 percent.
Wall Street's lead was weak, with major indices opening lower on Wednesday and staying in negative territory throughout the day. The Dow Jones Industrial Average plunged 411.32 points or 1.06 percent to finish at 38,441.54. The NASDAQ fell by 99.30 points or 0.58 percent to close at 16,920.58, while the S&P 500 sank 39.09 points or 0.74 percent, ending at 5,266.95.
This weakness in the U.S. markets was attributed to a continued rise in treasury yields, with the yield on the benchmark ten-year note reaching its highest level in nearly a month. The ongoing increase in treasury yields has heightened concerns about future interest rates ahead of crucial inflation data expected later in the week.
Additionally, crude oil prices dropped on Wednesday, driven by concerns about the potential adverse impact that high borrowing costs may have on energy demand. West Texas Intermediate crude oil futures for July fell by $0.60, settling at $79.23 per barrel.
