On Wednesday, the Malaysian stock market reversed its two-day decline, during which it had lost over a dozen points, equating to a 0.8 percent decrease. The Kuala Lumpur Composite Index (KLCI) settled just under the 1,600-point mark but is anticipated to open significantly lower on Thursday.
The outlook for Asian markets is largely one of consolidation due to an increasingly pessimistic forecast for interest rates. European markets exhibited a mixed and flat performance, while U.S. exchanges experienced sharp declines, which is expected to influence Asian markets similarly.
The KLCI ended Wednesday slightly up, buoyed by industrial sector gains, despite weaknesses in financials and mixed results in the plantations and telecommunications sectors.
The index gained 2.25 points, or 0.14 percent, concluding at 1,599.58, with trading ranges between 1,594.75 and 1,602.38.
Among active stocks, CIMB Group saw a slight reduction of 0.25 percent. In contrast, Genting, Maxis, and QL Resources advanced by 0.84 percent, while Genting Malaysia surged by 1.43 percent. IHH Healthcare increased by 0.42 percent. Conversely, Kuala Lumpur Kepong fell by 0.74 percent, Maybank dipped by 0.20 percent, and MISC eased by 0.13 percent. MRDIY rose by 0.56 percent, Nestle Malaysia rallied 1.23 percent, Petronas Chemicals gained 0.63 percent, and Tenaga Nasional soared 2.03 percent. However, PPB Group slid 0.82 percent, Press Metal shed 0.62 percent, Public Bank sank 0.66 percent, and Telekom Malaysia lost 0.45 percent. Meanwhile, RHB Bank gained 0.31 percent, Sime Darby dropped 0.43 percent, SD Guthrie improved by 0.20 percent, Sunway added 0.65 percent, and YTL Corporation climbed 0.94 percent. YTL Power, Axiata, Celcomdigi, and IOI Corporation remained unchanged.
A grim report from Wall Street highlighted a significant downturn as the major averages opened flat but plummeted after the Federal Open Market Committee’s (FOMC) interest rate announcement.
The Dow Jones Industrial Average plunged 1,123.03 points, or 2.58 percent, settling at 42,326.87. The NASDAQ dropped 716.37 points, or 3.56 percent, closing at 19,392.69, and the S&P 500 fell 178.45 points, or 2.95 percent, to end at 5,872.16.
The dramatic sell-off followed the Federal Reserve's decision, which had been anticipated, to reduce interest rates by a quarter-point. However, the focus shifted to fewer projected rate cuts next year than previously expected.
The Federal Reserve's latest economic projections indicate a federal funds rate range of 3.75 to 4.0 percent by the end of 2025, an increase from the 3.25 to 3.50 percent range forecast in September. Assuming a quarter-point rate reduction, only two rate cuts are expected next year, compared to the four previously forecast, as inflation is now predicted to be higher in 2025 than initially estimated.
On another front, crude oil prices saw an upward swing on Wednesday, rebounding from recent losses. This follows data reports showing a reduction in crude inventories and an increase in gasoline stockpiles last week. West Texas Intermediate Crude oil futures for January rose by $0.50, or 0.71 percent, closing at $70.58 per barrel.
The material has been provided by InstaForex Company -
www.instaforex.com
