The Malaysian stock market ended its six-day winning streak on Tuesday, during which it had gained more than 35 points or 2.1 percent. The Kuala Lumpur Composite Index now sits just above 1,510 points and it's expected to consolidate around the same place on Wednesday.
Global predictions for Asian markets remain uncertain ahead of the Federal Open Market Committee's (FOMC) rate decision and statement due later today. European markets experienced uplift, while U.S. exchanges showed mixed results, setting a trend that Asian markets are likely to emulate.
On Tuesday, the KLCI ended slightly lower, under pressure from losses in financial and plantation stocks, as well as telecom shares. The index fell by 2.64 points or 0.17 percent to close at 1,512.75, having traded between 1,511.84 and 1,520.31 during the day.
Notable performers included Axiata and Genting Malaysia, both down 0.37 percent, while Celcomdigi fell 0.95 percent. In contrast, Maybank rose 0.11 percent, Petronas Chemicals rallied 1.49 percent and YTL Corporation added 0.42 percent. YTL Power surged 6.33 percent with no change for MISC, Kuala Lumpur Kepong, CIMB Group, Petronas Gas, Genting and QL Resources.
Wall Street's major averages provided little direction; the Dow Jones increased but the NASDAQ remained down for the entire session and the S&P 500 ended marginally lower. This came as traders cashed in on tech stocks prior to the release of quarterly results from Alphabet, Microsoft, Apple, Amazon and Meta Platforms.
The Federal Reserve's upcoming monetary policy announcement may have inspired traders to secure profits due to expected uncertainties. Although interest rates are predicted to remain unchanged, the statement could have a major bearing on rate outlooks.
In economic news, the U.S. Labor Department reported an unexpected rise in job openings in December while the Conference Board noted an ongoing improvement in U.S. consumer confidence in January. Crude oil prices also saw a significant rise, correcting the sharp fall from the previous session, after the International Monetary Fund lifted its global growth prediction for 2024. West Texas Intermediate for March delivery gained $1.04 or 1.4 percent to $77.82 a barrel.
