On Monday, the Malaysian stock market experienced another downturn, following Friday's brief respite from a two-day decline that saw a 1.9 percent drop, equating to nearly 30 points. The Kuala Lumpur Composite Index (KLCI) now hovers just above the 1,585 mark, with expectations of a potential rebound on Tuesday. The outlook for Asian markets is mixed, with anticipated gains in the oil sector likely countered by slowing tech shares. European markets closed in negative territory, while U.S. indices displayed mixed movements, suggesting Asian markets may navigate a middle ground.
The KLCI closed significantly lower on Monday, weighed down by declines across industrial, telecom, financial, and plantation sectors. The index decreased by 16.82 points, or 1.05 percent, to close at 1,585.59, having fluctuated between 1,578.97 and 1,599.36 throughout the session. Key market players showed varied performances: Axiata dropped 0.44 percent, while CelcomDigi rose by 0.27 percent. CIMB Group fell by 0.98 percent, and Gamuda plunged 4.20 percent. Meanwhile, IHH Healthcare saw a gain of 0.57 percent, IOI Corporation declined 1.31 percent, and Maxis slid 1.10 percent. Maybank saw a slight dip of 0.20 percent, MISC eased by 0.14 percent, and MRDIY retreated 2.22 percent. Nestle Malaysia fell 2.73 percent, while Petronas Chemicals decreased 0.42 percent, and Petronas Dagangan rose 0.84 percent. PPB Group lost 0.82 percent, Press Metal increased by 0.43 percent, and Public Bank collected a gain of 0.23 percent. QL Resources declined 2.17 percent, RHB Bank weakened 1.87 percent, Sime Darby dropped by 2.24 percent, SD Guthrie slumped 2.03 percent, Sunway decreased 2.81 percent, Tenaga Nasional fell 1.42 percent, YTL Corporation plummeted 7.63 percent, YTL Power plunged 5.88 percent, while 99 Speed Mart Retail, Kuala Lumpur Kepong, and Telekom Malaysia remained unchanged.
On Wall Street, the major indices presented a mixed yet generally upward trend. The Dow Jones Industrial Average surged by 359.95 points, or 0.86 percent, ending at 42,298.40. Conversely, the NASDAQ fell by 74.01 points, or 0.39 percent, closing at 19,087.62, and the S&P 500 gained 8.27 points, or 0.14 percent, concluding at 5,835.31.
The tech sector faced early pressure due to considerable losses in Nvidia (NVDA), which plunged by up to 4.7 percent. Additionally, renewed concerns about potential interest rate hikes contributed to negative sentiments following a stronger-than-anticipated monthly jobs report last Friday. However, the selling pressure eased over the trading day, prompting some investors to acquire stocks at lower prices, as the S&P 500 rebounded from its lowest intraday level in over two months.
Oil prices surged to a five-month high on Monday, driven by potential supply risks following the U.S.'s comprehensive sanctions on Russia's oil exports, while the strengthening U.S. dollar also exerted influence. West Texas Intermediate Crude oil futures for February settled at $78.82 a barrel, marking an increase of $2.25, or nearly 3 percent.
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