On Tuesday, the Malaysia stock market broke a three-day losing streak where it had fallen over 15 points, or 0.9 percent. The Kuala Lumpur Composite Index is now positioned just below the 1,630-point mark, though there may be renewed selling pressure anticipated for Wednesday.
Globally, forecasts for Asian markets are pessimistic due to renewed worries about interest rate prospects. While European markets showed mixed results, U.S. markets declined, suggesting Asian markets might follow the latter's trend.
In Malaysia, the KLCI saw a modest rise on Tuesday. Positive movements in finance, construction, and plantation stocks were balanced by setbacks in the telecommunications sector.
On the day, the KLCI increased by 4.32 points, or 0.27 percent, concluding at 1,629.79, having fluctuated between 1,624.50 and 1,634.27 throughout trading. Among the active stocks, 99 Speed Mart Retail dropped 1.65 percent, Axiata plunged 2.49 percent, while Celcomdigi inched up 0.27 percent. CIMB Group advanced 0.87 percent, Gamuda soared 7.00 percent, whereas IHH Healthcare decreased by 0.96 percent. Kuala Lumpur Kepong and YTL Corporation each saw a 0.37 percent increase, Maybank gained 0.59 percent, while MISC fell 0.66 percent. Nestle Malaysia shed 0.70 percent, Petronas Chemicals rose 0.41 percent, Petronas Gas dipped 0.11 percent, Press Metal fell 1.24 percent, and QL Resources decreased 0.43 percent. RHB Bank added 0.16 percent, Sime Darby fell 1.29 percent, SD Guthrie increased 2.64 percent, and Sunway jumped 2.78 percent. Telekom Malaysia decreased by 0.61 percent, Tenaga Nasional dropped 1.78 percent, and YTL Power rose by 1.35 percent, while IOI Corporation, PPB Group, Maxis, MRDIY, and Public Bank remained unchanged.
The Wall Street outlook remains bleak, as major indices initially opened slightly higher on Tuesday before turning downward and closing significantly lower. The Dow fell by 178.20 points or 0.42 percent to close at 42,528.36, the NASDAQ dropped 375.30 points or 1.89 percent to 19,489.68, and the S&P 500 declined by 66.35 points or 1.11 percent to settle at 5,909.03.
This significant downturn in stocks was driven by a notable increase in treasury yields, with the yield on the benchmark 10-year note reaching its highest level in eight months. Rising treasury yields stoked concerns over the outlook for interest rates, following the release of encouraging U.S. economic data.
The Institute for Supply Management reported that U.S. service sector activity surpassed expectations in December. Additionally, their prices index hit a one-year high, raising concerns over persistent inflation. Furthermore, the U.S. Labor Department reported an unexpected increase in job openings in November.
On the energy front, oil prices increased on Tuesday amid a potential supply shortfall after China decided to shun imports from Iran and Russia, compounded by unusually cold weather in the United States. West Texas Intermediate Crude oil futures for February rose by $0.69, or 0.94 percent, to $74.25 a barrel.
The material has been provided by InstaForex Company -
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