The Malaysian stock market has experienced a downward trend over three consecutive sessions, declining nearly 10 points or 0.6 percent during this period. Presently, the Kuala Lumpur Composite Index is positioned just below the 1,610 mark, with potential for further declines on Wednesday.
The outlook for Asian markets suggests potential negative movement, particularly with anticipated weaknesses in the computer, semiconductor, and housing sectors. Following recent declines in European and U.S. markets, Asian exchanges are likely to mirror this trend.
On Tuesday, the KLCI registered a slight decrease, reflecting mixed outcomes across financial, plantation, telecommunications, and industrial sectors. The index dropped by 2.46 points, or 0.15 percent, closing at 1,608.97. It fluctuated between 1,607.88 and 1,615.93 throughout the trading day.
Key performers included Axiata, which increased by 0.42 percent. In contrast, Celcomdigi decreased by 0.27 percent, CIMB Group fell by 0.86 percent, Genting lost 0.82 percent, Genting Malaysia declined by 0.47 percent, while IHH Healthcare rose by 0.27 percent. IOI Corporation saw a slight decrease of 0.26 percent, whereas Kuala Lumpur Kepong gained 0.75 percent. Maxis dropped by 0.29 percent, MISC increased by 0.54 percent, and MRDIY pulled back by 1.61 percent. Meanwhile, Nestle Malaysia advanced by 0.62 percent, Petronas Chemicals surged by 5.82 percent, PPB Group edged up by 0.31 percent, and Press Metal grew by 0.61 percent. Public Bank fell by 0.44 percent, QL Resources decreased by 1.63 percent, both RHB Bank and Telekom Malaysia increased by 0.30 percent. SD Guthrie dropped by 0.79 percent, Sunway retreated by 0.62 percent, Tenaga Nasional declined by 1.01 percent, and YTL Power rose by 0.82 percent. Maybank, Sime Darby, and YTL Corporation remained unchanged.
On Wall Street, a cautious sentiment prevailed, with the major indices opening stably before slipping into the negative towards the session's end. The Dow shed 154.10 points, or 0.35 percent, closing at 44,247.83. The NASDAQ declined by 49.45 points, or 0.25 percent, ending at 19,687.24, and the S&P 500 fell by 17.94 points, or 0.30 percent, concluding at 6,034.91.
Recent Wall Street declines are attributed to traders capitalizing on recent market strength, especially in anticipation of the Labor Department's forthcoming report on consumer price inflation. While it is anticipated that the Federal Reserve will lower interest rates by 25 basis points next week, this inflation data could influence expectations for future rate reductions by the central bank.
According to CME Group's FedWatch Tool, there is an 86.1 percent likelihood that the Federal Reserve will cut rates by a quarter point next week, with a 69.1 percent chance that the rates will remain unchanged in late January.
Oil futures saw gains on Tuesday, buoyed by optimism regarding increased demand from China following new stimulus measures by the Chinese government. West Texas Intermediate Crude oil futures for January rose by $0.22 or 0.32 percent, settling at $68.59 per barrel.
