The Malaysian stock market has experienced a decline over the past two consecutive sessions, shedding nearly 5 points or 0.3%. The Kuala Lumpur Composite Index (KLCI) now hovers slightly above the 1,610 mark, signaling potential further declines on Tuesday.
Globally, the forecast for the Asian markets appears uncertain, reflecting weakness in technology stocks ahead of crucial U.S. inflation data expected later this week. European markets showed mixed results, while U.S. stock exchanges experienced a downturn, suggesting Asian markets may also show mixed performances.
On Monday, the KLCI suffered a modest decline, driven by weaknesses in the industrial sector and variable performances among financials, plantations, and telecom sectors. The index slipped 1.82 points, or 0.11%, to close at its intra-day high of 1,611.43 after dropping to a low of 1,602.94 during the session.
Among notable market movements, Celcomdigi fell by 0.54%, while CIMB Group edged up by 0.12%. Genting and Genting Malaysia recorded gains of 0.55% and 1.42%, respectively. IHH Healthcare increased by 1.37%, and IOI Corporation rose by 0.51%. Conversely, Kuala Lumpur Kepong declined by 1.65%, Maybank fell by 0.59%, and MISC dropped by 0.27%. Other movements included MRDIY down 1.59%, Nestle Malaysia up 0.42%, and Petronas Chemicals down 1.43%. Notable declines were also seen in Public Bank, which slid 0.87%, and YTL Corporation, which plummeted by 4.00%, while Axiata remained stable.
Wall Street provided a negative lead, as major indices, despite opening mixed, declined throughout the session. The Dow Jones fell 240.59 points or 0.54% to close at 44,401.93, the NASDAQ dropped 123.08 points or 0.62% to end at 19,736.69, and the S&P 500 decreased by 37.42 points or 0.61% to 6,052.85. The decline was exacerbated by Nvidia (NVDA), whose shares fell 2.6% after a Chinese regulator initiated an investigation into potential antitrust law violations by the chipmaker.
Additionally, the downturn on Wall Street was influenced by anticipation of upcoming U.S. inflation data. While the Federal Reserve is expected to cut rates by an additional 25 basis points next week, there remains some uncertainty regarding further rate cuts next year.
In the energy sector, oil prices rose due to geopolitical tensions and optimism surrounding potential monetary policy easing by China's central bank to stimulate economic growth. West Texas Intermediate Crude oil futures for January closed at $68.37 a barrel, rising by $1.17 or 1.74%.
Focusing on Malaysia, the country's October industrial production figures are expected later today, following a 2.3% year-on-year increase in September.
