Malaysia Bourse Likely To Reclaim 1,500-Point Mark

(RTTNews) - The Malaysia stock market headed south again on Wednesday, one day after ending the two-day slide in which it had fallen almost a dozen points or 0.8 percent. The Kuala Lumpur Composite Index new rests just above the 1,490-point plateau although it figures to bounce higher again on Thursday.

The global forecast for the Asian markets is upbeat thanks to easing inflation concerns. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

The KLCI finished modestly lower on Wednesday following heavy damage from the glove makers, while the financials and telecoms were mixed and the plantations offered support.

For the day, the index shed 5.35 points or 0.36 percent to finish at 1,492.33 after trading between 1,490.22 and 1,496.25. Volume was 2.165 billion shares worth 1.677 billion ringgit. There were 601 decliners and 242 gainers.

Among the actives, Axiata surrendered 1.69 percent, while CIMB Group rose 0.19 percent, Dialog Group retreated 1.34 percent, Digi.com lost 0.27 percent, Genting dropped 0.43 percent, Genting Malaysia gained 0.34 percent, Hartalega Holdings plummeted 12.50 percent, IHH Healthcare improved 0.31 percent, INARI tanked 4.41 percent, Kuala Lumpur Kepong climbed 1.08 percent, Maybank collected 0.11 percent, Maxis jumped 1.60 percent, MISC advanced 0.99 percent, MRDIY declined 1.39 percent, Petronas Chemicals increased 0.23 percent, Press Metal perked 0.21 percent, Public Bank sank 0.64 percent, RHB Capital slumped 0.34 percent, Sime Darby rumbled 1.71 percent, Sime Darby Plantations strengthened 1.57 percent, Telekom Malaysia added 0.36 percent, Tenaga Nasional fell 0.12 percent, Top Glove plunged 5.58 percent and IOI Corporation and PPB Group were unchanged.

The lead from Wall Street is broadly positive as the major averages opened firmly higher on Wednesday and stayed that way throughout the day, ending at three-month closing highs.

The Dow spiked 535.10 points or 1.63 percent to finish at 33,309.51, while the NASDAQ surged 360.88 points or 2.89 percent to end at 12,854.80 and the S&P 500 jumped 87.77 points or 2.13 percent to close at 4,210.24.

The rally on Wall Street came after the Labor Department released a report showing U.S. consumer prices unexpectedly came in flat in the month of July.

The tamer than expected inflation data has led to speculation that the Federal Reserve may slow the pace of interest rate hikes at its September meeting.

Crude oil prices climbed higher on Wednesday, lifted by data showing a bigger-than-expected drop in gasoline inventories in the U.S. last week. A weak dollar and increased demand for gasoline also contributed to the jump in oil prices. West Texas Intermediate Crude oil futures ended higher by $1.43 or 1.6 percent at $91.93 a barrel.