The Malaysian stock market on Wednesday put an end to its three-day profitable run, during which it had accumulated nearly 20 points or 1.3 percent. The Kuala Lumpur Composite Index (KLCI) now sits just beneath the 1,540-point mark, but it could experience a slight increase again on Thursday.
The global forecast for the Asian markets suggests a marginal upside, guided by conflicting signals regarding interest rate predictions. The European markets experienced an uptick, while the U.S. exchanges showed mixed results with little change. It's likely that the Asian markets will reflect a median outlook.
On Wednesday, the KLCI ended slightly lower due to losses from the telecommunications and financial sectors, while plantations displayed mixed results.
Specifically, the index dropped 10.98 points or 0.71 percent, ending the day at a low of 1,537.01, despite peaking at 1,548.42.
Contributing to this movement were a few key players. Axiata and CIMB Group both fell by 1.50 percent, while Celcomdigi dropped 0.47 percent. In the hospitality and healthcare sectors, Genting slipped 0.21 percent and IHH Healthcare plunged 0.66 percent. Meanwhile, among the heavy industries, IOI Corporation fell 0.25 percent and Kuala Lumpur Kepong eased off by 0.09 percent.
However, it wasn't all downward trends. The day saw MISC gaining 0.26 percent, PPB Group advancing 0.38 percent, and QL Resources rallying at 0.67 percent.
Mixed signals emanated from Wall Street as well. Major averages opened slightly lower on Wednesday. Following an unpredictable report from the Institute for Supply Management showing an unexpected slowdown in U.S. service sector growth, the market rebounded a little but ended mixed.
The likelihood of the Federal Reserve holding off on lowering interest rates due to robust private sector job growth in the U.S. in March also impacted Wall Street's early performance.
Fed Chair Jerome Powell, during a speech at Stanford University, reinforced the notion that the Federal Reserve is not rushing to start lowering interest rates.
In the oil sector, prices rose after the OPEC concluded its meeting without amending its production policy. As a result, West Texas Intermediate Crude oil futures for May closed higher by $0.28 or 0.33 percent at $85.43 per barrel.
