Win Streak May End For Malaysia Stock Market

(RTTNews) - Ahead of Wednesday's holiday for the Islamic New Year, the Malaysia stock market had finished higher in five straight sessions, collecting almost 35 points or 2.2 percent in that span. The Kuala Lumpur Composite Index now sits just beneath the 1,710-point plateau although it's likely to open under water on Thursday.

The global forecast for the Asian markets is negative on concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The KLCI finished sharply higher on Tuesday following gains from the financial shares, telecoms and plantation stocks.

For the day, the index climbed 18.60 points or 1.10 percent to finish at 1,709.99 after trading between 1,685.57 and 1,711.20.

Among the actives, 99 Speed Mart Retail slumped 1.16 percent, while AMMB Holdings rose 0.31 percent, Axiata surged 3.68 percent, Celcomdigi skyrocketed 3.70 percent, CIMB Group collected 1.17 percent, Gamuda rallied 2.31 percent, IHH Healthcare advanced 1.15 percent, IOI Corporation climbed 1.20 percent, Kuala Lumpur Kepong increased 0.58 percent, Maxis soared 3.02 percent, Maybank jumped 2.31 percent, MISC sank 0.75 percent, MRDIY strengthened 1.90 percent, Nestle Malaysia accelerated 2.43 percent, Petronas Chemicals perked 0.22 percent, Petronas Dagangan improved 0.88 percent, Petronas Gas shed 0.69 percent, PPB Group dropped 0.97 percent, Press Metal plunged 2.38 percent, Public Bank spiked 2.64 percent, QL Resources skidded 1.06 percent, RHB Bank lost 0.24 percent, Sime Darby tumbled 1.36 percent, SD Guthrie fell 0.17 percent, Sunway added 0.57 percent, Telekom Malaysia vaulted 1.77 percent, Tenaga Nasional gained 0.55 percent, YTL Corporation elevated 1.45 percent and YTL Power expanded 1.68 percent.

The lead from Wall Street is weak as the major averages opened slightly higher on Wednesday and hugged the line before tumbling after the Federal Reserve's rate decision.

The Dow dropped 507.12 points or 0.98 percent to finish at 51,492.55, while the NASDAQ slumped 354.69 points or 1.34 percent to close at 26,021.66 and the S&P 500 sank 91.25 points or 1.21 percent to end at 7,420.10.

The weakness that emerged on Wall Street came after the Fed left interest rates unchanged as widely expected, but projections suggest that rates could be higher by end of the year.

The Fed noted that inflation remains elevated relative to the Fed's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy.

In economic news, the Commerce Department released a report showing retail sales in the U.S. increased by much more than expected in the month of May.

Crude oil prices ticked higher on Wednesday as energy experts remain skeptical of an early restoration of normal oil trade in the gulf region despite the upcoming U.S.-Iran deal. West Texas Intermediate crude for July delivery was up $0.45 or 0.59 percent at $76.50 per barrel.