Malaysia Stock Market Due For Support On Tuesday

(RTTNews) - The Malaysia stock market has moved lower in five straight sessions, slipping more than 25 points or 1.6 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,650-point plateau although it's expected to open in the green on Tuesday. The global forecast for the Asian markets is positive on anticipated bargain hunting and on the outlook for interest rates. The European and U.S. markets were solidly higher and the Asian bourses are tipped to open in similar fashion.

The KLCI finished slightly lower on Monday following losses from the plantations, gains from the financials and a mixed performance from the telecoms.

For the day, the index eased 1.63 points or 0.10 percent to finish at 1,651.49 after trading between 1,642.31 and 1,659.11. Among the actives, Axiata and Genting Malaysia both fell 0.82 percent, while Celcomdigi improved 1.37 percent, CIMB Group strengthened 1.47 percent, Genting sank 0.95 percent, IHH Healthcare jumped 1.82 percent, IOI Corporation tanked 3.28 percent, Kuala Lumpur Kepong dropped 1.13 percent, Maxis skidded 1.31 percent, Maybank collected 0.93 percent, MISC rallied 1.64 percent, MRDIY tumbled 2.93 percent, Petronas Chemicals declined 1.97 percent, PPB Group rose 0.28 percent, Press Metal retreated 2.50 percent, Public Bank advanced 1.05 percent, QL Resources gained 0.45 percent, RHB Capital climbed 1.31 percent, Sime Darby lost 0.85 percent, SD Guthrie shed 0.88 percent, Sunway added 0.51 percent, Telekom Malaysia slumped 1.34 percent, Tenaga Nasional slid 0.54 percent, YTL Corporation plunged 4.02 percent and YTL Power plummeted 4.26 percent.

The lead from Wall Street is upbeat as the major averages opened higher on Monday and remained well in the green throughout the trading day.

The Dow surged 484.18 points or 1.20 percent to finish at 40,829.59, while the NASDAQ rallied 193.77 points or 1.16 percent to close at 16,884.60 and the S&P 500 climbed 62.63 points or 1.16 percent to end at 5,471.05.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following the steep drop seen last week, which dragged the NASDAQ down to its lowest levels in nearly a month.

Optimism the Federal Reserve will lower interest rates later this month has also contributed to the strength on Wall Street, despite lingering concerns about the outlook for the U.S. economy.

CME Group's FedWatch Tool is currently indicating a 73 percent chance the Fed will lower rates by 25 basis points and a 29 percent chance of a 50 basis point rate cut.

Oil prices climbed higher Monday on the possibility of weather-related production issues in the the Gulf of Mexico, and on OPEC's decision to delay a production boost originally scheduled to begin in October. West Texas Intermediate Crude oil futures for October ended up by $1.04 or 1.54 percent at $68.71 a barrel. Closer to home, Malaysia will provide July numbers for industrial production later today, with forecasts suggesting an increase of 4.5 percent on year - easing from 5.0 percent in June.