Soft Start Called For Malaysia Stock Market

(RTTNews) - Ahead of Wednesday's Labor Day holiday, the Malaysia stock market had ended the two-day winning streak in which it had advanced almost 15 points or 1 percent. The Kuala Lumpur Composite Index now sits just above the 1,575-point plateau and it may take further damage on Thursday.

The global forecast for the Asian markets is soft following the Federal Reserve's rate decision and statement. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The KLCI finished modestly lower on Tuesday as losses from the financials and plantations were mitigated by support from the telecoms.

For the day, the index slid 6.69 points or 0.42 percent to finish at the daily low of 1,575.97 after peaking at 1,589.06.

Among the actives, Axiata climbed 1.07 percent, while Celcomdigi dropped 0.72 percent, Genting slid 0.44 percent, Genting Malaysia added 0.38 percent, IHH Healthcare lost 0.63 percent, IOI Corporation and Petronas Dagangan both slumped 0.73 percent, Kuala Lumpur Kepong eased 0.26 percent, Maxis rallied 0.82 percent, Maybank was down 0.21 percent, MISC perked 0.13 percent, MRDIY shed 0.64 percent, Petronas Chemicals tanked 1.60 percent, PPB Group retreated 1.01 percent, Press Metal gained 0.37 percent, Public Bank tumbled 1.44 percent, QL Resources fell 0.47 percent, RHB Capital collected 0.55 percent, Sime Darby improved 0.72 percent, Sime Darby Plantations sank 0.67 percent, Telekom Malaysia advanced 0.98 percent, Tenaga Nasional rose 0.34 percent, YTL Corporation plunged 3.13 percent, YTL Power plummeted 3.97 percent and CIMB Group and Hong Leong Financial were unchanged.

The lead from Wall Street offers little guidance as the major averages were flat on Wednesday until a spike following the Federal Reserve's monetary policy announcement. It faded quickly, however, and the markets finished mixed and little changed.

The Dow gained 87.37 points or 0.23 percent to finish at 37,903.29, while the NASDAQ slumped 52.34 points or 0.33 percent to end at 15,605.48 and the S&P 500 lost 17.30 points or 0.34 percent to close at 5,018.39.

The late-day volatility came after the Fed announced its widely expected decision to leave interest rates unchanged, citing a lack of further progress toward its 2 percent inflation objective.

Members of the Fed also reiterated they need greater confidence inflation is moving sustainably toward 2 percent before they consider cutting interest rates.

On the economic data front, payroll processor ADP released a report showing private sector employment increased by more than expected in the month of April.

Oil prices fell to a seven-week low on Wednesday after data showed an unexpected sharp jump in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for June ended lower by $2.93 at $79.00 a barrel, the lowest settlement since March 12.