Continued Consolidation Called For Malaysia Stock Market
(RTTNews) - The Malaysia stock market headed south again on Wednesday, one session after halting the three-day slide in which it had stumbled more than 30 points or 2.1 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,500-point plateau and it may take further damage on Thursday.
The global forecast for the Asian markets is soft with technology stocks expected to continue their roller coaster ride, this time to the downside. A rising number of coronavirus cases adds to the negative sentiment. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.
The KLCI finished modestly lower on Wednesday following losses from the financials and industrials, while the plantations and rubber glove makers were mixed.
For the day, the index sank 9.30 points or 0.62 percent to finish at 1,496.48 after trading between 1,491.17 and 1,509.15. Volume was 8.453 billion shares worth 4.325 billion ringgit. There were 896 decliners and 246 gainers.
Among the actives, Axiata plummeted 3.16 percent, while Hartalega Holdings surged 3.13 percent, RHB Capital plunged 2.32 percent, Sime Darby and Petronas Chemicals both tanked 2.14 percent, Genting tumbled 2.08 percent, Genting Malaysia skidded 1.86 percent, Dialog Group retreated 1.81 percent, Press Metal declined 1.57 percent, Public Bank surrendered 1.39 percent, Tenaga Nasional sank 1.09 percent, Malaysia Airports Holdings dropped 1.03 percent, IHH Healthcare shed 0.94 percent, IOI Corporation jumped 0.90 percent, Digi.com advanced 0.74 percent, CIMB Group lost 0.64 percent, Maybank fell 0.42 percent, MISC slid 0.40 percent, Kuala Lumpur Kepong dipped 0.26 percent, Maxis rose 0.20 percent, Top Glove eased 0.12 percent and Sime Darby Plantations and AMMB Holdings were unchanged.
The lead from Wall Street is broadly negative as stocks moved sharply lower on Wednesday, wiping out gains from the previous session as the markets fell to a one-month closing low.
The Dow tumbled 525.05 points or 1.92 percent to finish at 26,763.13, while the NASDAQ plummeted 330.65 points or 3.02 percent to end at 10,632.99 and the S&P 500 dropped 78.65 points or 2.37 percent to close at 3,236.92.
The sell-off on Wall Street came amid renewed weakness among technology stocks, as reflected by the particularly steep drop by the tech-heavy NASDAQ. Big-name tech companies like Netflix (NFLX), Apple (AAPL), Amazon (AMZN) and Alphabet (GOOGL) all showed significant moves to the downside.
Concerns about surging coronavirus cases in certain parts of the world may also have weighed on the markets even as President Donald Trump indicated the U.S. would not follow the U.K.'s lead and implement a second round of lockdowns.
Meanwhile, Federal Reserve Chair Jerome Powell, continuing to testify before Congress for the second day, said the U.S. Congress and the Federal Reserve both need to "stay with it" in working to bolster the economic recovery.
Crude oil futures settled higher Wednesday after data showed a drop in U.S. crude inventories last week. But the upside was capped by worries about the energy demand outlook amid a continued surge in coronavirus cases. West Texas Intermediate Crude futures for November ended higher by $0.13 or 0.3 percent at $39.93 a barrel.
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