The Malaysia stock market experienced a minor decline on Monday, ending a two-day winning streak that saw it gain nearly 10 points or 0.6 percent. The Kuala Lumpur Composite Index (KLCI) closed just below the 1,615-point level, with expectations for a rebound on Tuesday.
The broader forecast for Asian markets is relatively neutral with a slight upward bias, ahead of the Federal Open Market Committee (FOMC) statement due on Wednesday. European markets declined, while U.S. markets registered gains, suggesting a modest rise for Asian markets.
On Monday, the KLCI saw a slight downturn, primarily influenced by losses in plantation stocks and mixed performances in financial and telecommunication sectors. The index decreased by 3.49 points or 0.22 percent, closing at 1,614.37, after fluctuating between 1,613.01 and 1,619.24 throughout the day.
Several stocks showed varied performances: Axiata rose by 0.71 percent, Celcomdigi advanced by 0.79 percent, while CIMB Group and Tenaga Nasional both dipped by 0.29 percent. Genting decreased by 0.43 percent, Genting Malaysia by 1.13 percent, IHH Healthcare saw a slight increase of 0.16 percent, and IOI Corporation declined by 1.03 percent. Kuala Lumpur Kepong fell by 1.42 percent, Maxis dropped by 0.55 percent, and Maybank eased by 0.10 percent. Notably, MRDIY rallied by 2.12 percent, Petronas Chemicals climbed by 1.05 percent, while PPB Group and Press Metal suffered declines of 0.94 percent and 2.38 percent, respectively.
Other stocks such as QL Resources and Telekom Malaysia both fell by 0.16 percent, SD Guthrie declined by 0.69 percent, YTL Corporation tumbled by 1.37 percent, and companies like YTL Power, RHB Capital, Sime Darby, Public Bank, MISC, AMMB Holdings, and Hong Leong Bank saw no change.
Wall Street indicates a slight positive trend as the major indices began Monday's session lower but moved into positive territory by the close. The Dow Jones Industrial Average gained 69.05 points or 0.18 percent to finish at 38,868.04. The NASDAQ added 51.90 points or 0.35 percent to close at 17,192.53, and the S&P 500 increased by 13.80 points or 0.26 percent to end at 5,360.79.
Traders appeared hesitant to make substantial moves ahead of several crucial events later this week, including the Federal Reserve's monetary policy meeting. The Fed is expected to announce its latest decision on Wednesday, with most anticipating that interest rates will be left unchanged.
Given that the outcome is largely anticipated, traders are expected to focus on the Fed officials' latest economic and rate projections. Additionally, the Labor Department is slated to release its report on consumer price inflation for May before the Fed announcement.
In commodities, crude oil prices saw a sharp rise on Monday, driven by optimism regarding energy demand outlook. West Texas Intermediate (WTI) crude futures for July ended higher by $2.21 or about 2.9 percent, closing at $77.74 per barrel.
