The Malaysian stock market on Monday broke its recent two-day streak of minor gains, during which it had accumulated just under 7 points, or 0.5 percent. The Kuala Lumpur Composite Index now lingers just below the 1,540-point mark, indicating it may see further decline on Tuesday.
A global forecast for Asian markets predicts a weak outcome, however losses from tech stocks might be counterbalanced by support from oil companies. Notably, European markets appeared mixed and flat, while the U.S. exchanges reflected a downtrend- which might create a middle ground for Asian markets.
On Monday, the KLCI ended marginally lower due to losses from telecommunications and inconsistent performances from the finance and plantations sectors. The day ended with the index slipping 4.85 points or 0.31 percent, closing at 1,537.54 after trading between 1,532.73 and 1,540.23.
Noteworthy performers of the day include AMMB Holdings, which increased by 0.24 percent, and IOI Corporation, which took a hit of 1.73 percent. The performance of various sectors ranged vastly, however, Public Bank, Petronas Gas, Genting Malaysia, QL Resources, Sime Darby, and Kuala Lumpur Kepong ended the day without any change.
Wall Street's influence is soft with major averages starting weak on Monday and maintaining a similar trend throughout the day. The Dow dropped 162.26 points or 0.41 percent, finishing at 39,313.64.
Tech stocks weighed on the markets, including semiconductor giant Intel (INTC), which plummeted by as much as 4.7 percent. This happened after reports suggested that China has issued new guidelines to gradually remove microprocessors from Intel and Advanced Micro Devices (AMD) from government PCs and servers. However, traders seemed to hold back on substantial moves due to impending key economic data releases.
In economic news, the Commerce Department's report showed a surprising decrease in new home sales in the U.S. in February.
Oil prices saw an increase on Monday, due to concerns about potential supply disruptions as Ukraine continues its assault on Russian refineries. The weak dollar's expectation of interest rate cuts by central banks also contributed to the rise in oil prices. Consequently, West Texas Intermediate Crude oil futures for May ended higher by $1.32 or 1.64 percent, standing at $81.95 a barrel.
