Rally May Stall For Malaysia Stock Market

(RTTNews) - The Malaysia stock market has moved higher in three straight sessions, collecting almost 25 points or 1.6 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,700-point plateau although it may be stuck in neutral on Tuesday.

The global forecast for the Asian markets is soft thanks to recent developments in the Middle East. The European and U.S. markets were down and the Asian bourses are expected to follow suit.

The KLCI finished modestly higher on Monday following gains from the financials, weakness from the plantations and mixed performances from the telecoms and industrials.

For the day, the index improved 7.09 points or 0.42 percent to finish at 1,702.30 after trading between 1,689.00 and 1,703.64. Among the actives, 99 Speed Mart Retail stumbled 1.61 percent, while AMMB Holdings jumped 1.63 percent, Axiata tanked 2.22 percent, Celcomdigi rallied 2.03 percent, CIMB Group strengthened 1.61 percent, Gamuda climbed 0.69 percent, IHH Healthcare advanced 0.57 percent, IOI Corporation sank 0.70 percent, Kuala Lumpur Kepong dropped 0.95 percent, Maxis declined 1.37 percent, Maybank spiked 2.16 percent, MISC retreated 1.47 percent, MRDIY slumped 1.24 percent, Nestle Malaysia skidded 1.01 percent, Petronas Chemicals plummeted 4.67 percent, Petronas Dagangan tumbled 1.85 percent, Petronas Gas expanded 1.11 percent, PPB Group plunged 2.23 percent, Press Metal slipped 0.25 percent, Public Bank collected 0.21 percent, Sime Darby soared 3.15 percent, SD Guthrie lost 0.50 percent, Sunway vaulted 1.13 percent, Sunway Healthcare surged 4.89 percent, Telekom Malaysia fell 0.43 percent, Tenaga Nasional added 0.56 percent, YTL Corporation shed 0.51 percent, YTL Power contracted 1.35 percent and RHB Bank was unchanged.

The lead from Wall Street is weak as the major averages opened mixed on Monday but quickly turned lower and ended in the red, although off of session lows.

The Dow dipped 4.87 points or 0.01 percent to finish at 49,442.56, while the NASDAQ shed 64.09 points or 0.26 percent to close at 24,404.39 and the S&P 500 sank 16.92 points or 0.24 percent to end at 7,109.14.

The modest weakness on Wall Street came amid concerns about the re-escalation of tensions between the U.S. and Iran following the latest developments in the Middle East.

Over the weekend, Iran once again closed the Strait of Hormuz and purportedly fired on tankers in the vital waterway, blaming the U.S. blockade of Iranian ports for the moves.

The latest threats combined with news that U.S. forces have seized an Iranian-flagged cargo ship in the Gulf of Oman, contributed to a significant rebound by the price of crude oil.

Crude oil prices skyrocketed on Monday after the U.S. seized an Iranian cargo ship and Iran vowed to retaliate, renewing supply-related concerns. West Texas Intermediate crude for May delivery was up $5.54 or 6.61 percent at $89.39 per barrel.