The Malaysian stock market has experienced a decline over the past two consecutive sessions, shedding over a dozen points or 0.8%. Currently, the Kuala Lumpur Composite Index hovers just below the 1,600 mark and is anticipated to maintain its position in that range through Wednesday.
The global outlook for Asian markets is subdued ahead of the Federal Open Market Committee's interest rate decision later today. European and U.S. markets mostly posted losses, and Asian markets are expected to follow suit, although there is potential for a rebound due to bargain hunting as the day progresses.
On Tuesday, the KLCI closed modestly lower amidst widespread losses in industrial sectors and mixed outcomes in the financial, plantation, and telecommunication sectors. The index decreased by 9.52 points, or 0.59%, to settle at 1,597.33, after fluctuating between 1,594.51 and 1,606.81 throughout the day.
In terms of individual performances, Celcomdigi rose by 0.28%, whereas CIMB Group declined by 0.74%. Genting fell by 1.11%, Genting Malaysia by 0.94%, and IHH Healthcare by 0.70%. Kuala Lumpur Kepong experienced a 0.28% drop. Conversely, Maybank and Petronas Dagangan edged up by 0.20%. MISC saw a slight increase of 0.13%, while MRDIY dipped by 1.10%. Nestle Malaysia fell by 1.43%, and Petronas Chemicals faced a significant drop of 4.02%. PPB Group eased by 0.16%, Press Metal declined by 3.38%, and Public Bank decreased by 0.44%. QL Resources managed a modest gain of 0.21%, whereas RHB Bank slumped by 1.22%. Sime Darby’s value plunged by 3.70%, SD Guthrie dropped by 1.01%, and Sunway tumbled by 1.92%. Telekom Malaysia fell by 1.34%, while Tenaga Nasional added 0.58%. YTL Corporation retreated by 1.40%, YTL Power dipped by 0.27%, and Axiata, Maxis, and IOI Corporation remained unchanged.
Wall Street delivered a weak lead, with major averages starting the day lower on Tuesday and remaining negative throughout the session.
The Dow Jones Industrial Average dropped by 267.58 points or 0.61% to close at 43,449.90. The NASDAQ fell by 64.83 points or 0.32% to 20,109.06, and the S&P 500 declined by 23.47 points or 0.39% to conclude at 6,050.61.
This downturn on Wall Street was primarily driven by a pullback in technology stocks, particularly within networking and semiconductor sectors, which had rallied in the prior session. Additionally, stocks within the telecom, financial, housing, and steel sectors also trended downwards.
Investors are eagerly awaiting the Federal Reserve's highly anticipated monetary policy announcement later today. The Fed is expected to reduce rates by a quarter-point, yet market participants will be closely scrutinizing the Fed's statement and the latest economic forecasts, especially their rate predictions.
Oil prices decreased on Tuesday due to concerns regarding global demand outlook and potential oversupply in the upcoming year. January futures for West Texas Intermediate crude oil dropped by $0.63, or 0.9%, closing at $70.08 per barrel.
Domestically, Malaysia is set to release November data on imports, exports, and trade balance later today. Imports are expected to increase by 3.8% year-on-year, up from 2.6% in October. Exports are predicted to rise by 0.5% annually, slowing down from the previous 1.6%. The trade surplus is projected at MYR8.50 billion, declining from MYR12.00 billion in the prior month.
The material has been provided by InstaForex Company -
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