On Tuesday, the Malaysian stock market experienced another decline after briefly breaking a two-day downturn where it lost nearly 20 points or 1.2 percent. The Kuala Lumpur Composite Index (KLCI) currently hovers above the 1,600-point mark, with expectations set for a rebound on Wednesday.
The forecast for Asian markets varies, with a tendency towards slight gains, bolstered by anticipated support from the oil and technology sectors. While European markets faced declines, U.S. markets largely closed with gains, and it's expected that Asian markets will follow this positive trend.
Tuesday's session saw the KLCI edge lower due to declines in plantation stocks, alongside mixed performances in the financial, industrial, and telecommunications sectors. The index decreased by 1.70 points or 0.11 percent, closing at 1,602.34, after fluctuating between 1,601.02 and 1,608.88 throughout the day.
Among actively traded stocks, Axiata fell 0.88 percent, CelcomDigi rose 0.89 percent, and CIMB Group saw a gain of 0.37 percent. Other notable movements included Genting advancing 1.85 percent, Genting Malaysia gaining 1.40 percent, and IHH Healthcare increasing by 0.55 percent. Conversely, IOI Corporation dropped 1.25 percent, while Kuala Lumpur Kepong and Sime Darby both declined by 0.45 percent. Maxis made impressive gains with a 2.24 percent rise, and Sunway surged by 2.75 percent. Meanwhile, Maybank decreased by 0.97 percent, and Press Metal fell by 1.71 percent among others, whereas YTL Power, Nestle Malaysia, and Hong Leong Financial remained unchanged.
Wall Street delivered a cautiously positive lead, despite an early dip on Tuesday. The NASDAQ and S&P 500 managed to close with gains. The Dow Jones Industrial Average fell by 120.66 points or 0.28 percent to settle at 43,268.94. The NASDAQ, however, climbed 195.66 points or 1.04 percent to end at 18,987.47, and the S&P 500 rose by 23.36 points or 0.40 percent to close at 5,916.98.
Initially, Wall Street faced pressures over increasing tensions between the U.S. and Russia due to the ongoing conflict in Ukraine. President Joe Biden's decision to allow Ukraine to use U.S.-made long-range missiles for attacks on Russian territory provoked a significant response, with Russian President Vladimir Putin revising the country’s nuclear policy in reaction.
Despite this geopolitical concern, selling pressure diminished, aided by a strong performance from Nvidia (NVDA), which played a key role in the NASDAQ’s recovery. Nvidia is expected to announce its Q3 results later today.
In the commodities market, oil futures rose on Tuesday amid fears of potential supply disruptions after Ukraine deployed long-range missiles manufactured in the U.S. to target a Russian facility in the Bryansk region. West Texas Intermediate Crude oil futures for December delivery increased by $0.23, or approximately 0.3 percent, finishing at $69.39 per barrel.
