The Malaysian stock market resumed its downward trend on Wednesday, reversing gains after breaking a three-day losing sequence where it lost over 25 points or 1.6 percent. The Kuala Lumpur Composite Index (KLCI) currently sits just below the 1,640-point mark, though there is potential for a slight uptick on Thursday.
The outlook for Asian markets remains subdued, with global traders closely monitoring the unsettling developments in the Middle East. European and U.S. markets exhibited flat performance with a slight positive bias, which Asian markets are likely to emulate.
On Wednesday, the KLCI experienced a significant decline, driven by losses in finance, industrials, and telecommunications sectors, while plantation stocks exhibited mixed performance.
The index fell by 17.08 points or 1.03 percent, ending the day at 1,639.31, after fluctuating between 1,633.08 and 1,647.30.
Among actively traded stocks, Axiata dropped 2.80 percent, CIMB Group saw a decline of 1.36 percent, Genting plummeted 2.35 percent, Genting Malaysia decreased by 2.05 percent, with Kuala Lumpur Kepong increasing by 0.48 percent. Maxis fell 1.27 percent, Maybank dipped 0.76 percent, MISC declined 0.38 percent, MRDIY dropped 1.44 percent, Petronas Chemicals decreased 1.72 percent, PPB Group rose 1.09 percent, Press Metal fell 1.58 percent, Public Bank declined 1.74 percent, QL Resources rose 1.08 percent, RHB Bank fell 1.77 percent, Sime Darby slipped 0.81 percent, SD Guthrie decreased 1.05 percent, Sunway plunged 2.82 percent, Telekom Malaysia retreated 2.08 percent. Tenaga Nasional was down 0.69 percent, YTL Corporation lost 1.99 percent, YTL Power tumbled 2.16 percent, with IHH Healthcare, IOI Corporation, and Celcomdigi remaining stable.
Wall Street provided a hint of a slight positive trend, as major indices started slightly lower on Wednesday, maintained a steady course throughout the trading session, and concluded with modest gains.
The Dow gained 39.55 points or 0.09 percent to reach 42,196.52, while the NASDAQ advanced by 14.76 points or 0.08 percent, closing at 17,925.12, and the S&P 500 edged up by 0.79 points or 0.01 percent, ending at 5,709.54.
Initial weakness on Wall Street was partly due to apprehensions over escalating tensions in the Middle East, following Iran's recent ballistic missile strike on Israel.
Despite Iran's indication of disinterest in a broader conflict, these events have driven up crude oil prices, sparking concerns about potential inflationary pressures due to rising energy costs.
Additionally, optimism regarding aggressive interest rate cuts by the Federal Reserve diminished after ADP's report of stronger-than-expected private sector job growth in September.
Oil futures saw a modest increase on Wednesday, as traders speculated on potential supply disruptions amid ongoing Middle Eastern tensions. West Texas Intermediate crude oil futures for November concluded the session $0.27 or 0.39 percent higher, at $70.10 per barrel.
