Rally May Stall For Malaysia Stock Market

(RTTNews) - The Malaysia stock market has climbed higher in three straight sessions, collecting more than 25 points or 1.9 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,420-point plateau although it may run out of steam on Thursday.

The global forecast for the Asian markets is soft on recession fears and concerns about the outlook for interest rates. The European and U.S. markets were modestly lower and the Asian bourses are tipped to follow suit.

The KLCI finished modestly higher on Wednesday following gains from the plantation stocks and glove makers, while the financials and telecoms were mixed. For the day, the index gained 11.19 points or 0.79 percent to finish at 1,420.55 after trading between 1,413.67 and 1,424.65. Volume was 3.234 billion shares worth 1.720 billion ringgit. There were 518 gainers and 350 decliners. Among the actives, Axiata jumped 1.12 percent, while CIMB Group increased 0.57 percent, Dialog Group climbed 1.01 percent, Digi.com declined 1.13 percent, Genting improved 0.67 percent, Genting Malaysia added 0.72 percent, Hartalega Holdings accelerated 2.99 percent, INARI and IOI Corporation both rallied 2.40 percent, Kuala Lumpur Kepong advanced 0.98 percent, Maybank collected 0.23 percent, Maxis dropped 0.81 percent, MISC fell 0.28 percent, MRDIY tumbled 1.49 percent, Petronas Chemicals spiked 3.10 percent, PPB Group shed 0.50 percent, Press Metal skyrocketed 7.50 percent, Public Bank lost 0.47 percent, RHB Capital gained 0.71 percent, Sime Darby was up 2.33 percent, Sime Darby Plantations surged 3.96 percent, Telekom Malaysia rose 0.18 percent, Tenaga Nasional gathered 0.48 percent, Top Glove soared 3.23 percent and IHH Healthcare was unchanged.

The lead from Wall Street suggests mild consolidation as the major averages opened sharply lower but clawed their way back as the day progressed to end only slightly in the red.

The Dow shed 42.45 points or 0.14 percent to finish at 30,273.87, while the NASDAQ lost 27.77 points or 0.25 percent to end at 11,148.64 and the S&P 500 dipped 7.65 points or 0.20 percent to close at 3,783.28.

The early weakness on Wall Street came as central banks around the world appear poised to continue raising interest in the months ahead, potentially tipping the global economy into a recession as they combat elevated inflation.

A rebound by treasury yields also weighed on the markets, with the yield on the benchmark 10-year note regaining ground after easing in the two previous sessions. Selling pressure waned over the course of the session, however, as traders may feel the economic worries have been overdone.

Upbeat U.S. economic data has added to worries the Federal Reserve will continue to aggressively raising interest rates going into the end of the year as payroll processor ADP said private sector employment in the U.S. increased slightly more than expected in September.

Crude oil prices climbed higher on Wednesday after OPEC agreed to impose output cuts, aiming to spur a recovery in oil prices. West Texas Intermediate Crude oil futures for November climbed $1.24 or 1.4 percent at $87.76 a barrel.