Malaysian stock market expected to remain constrained


The Malaysian stock market has risen on two of three trading days since ending a six-day losing streak in which it fell more than 50 points or 3.4%. The Kuala Lumpur Composite Index sits just above the 1,500-point plateau, although it is expected to head south again on Tuesday.

The global forecast for Asia markets suggests consolidation on economic slowdown fears and interest rate outlook. European and American markets were down and Asian exchanges are expected to open similarly.

KLCI ended slightly higher on Monday after gains in financials and plantations, weakness in telecoms and a mixed picture from glove makers.

For the day, the index rose 1.28 points or 0.09% to end at 1,501.57 after trading between 1,481.79 and 1,506.55. The volume was 1.94 billion shares worth 1.589 billion ringgit. There were 616 refusals and 278 winners.

Among assets, Axiata fell 0.99%, while CIMB Group fell 1.10%, Dialog Group climbed 0.42%, fell 0.53%, Genting lost 0. .42%, Genting Malaysia lost 0.34%, Hartalega Holdings accelerated 1.20%, IHH Healthcare fell 0.47%. percent, INARI plunged 3.24 percent, Kuala Lumpur Kepong rose 0.18 percent, Maybank collected 0.34 percent, Maxis fell 0.26 percent, MISC improved by 0.28 percent, MRDIY rebounded 0.48 percent, Petronas Chemicals climbed 2.42 percent, PPB Group jumped 1.31 percent, Press Metal jumped 0.43 percent, RHB Capital reaped 0.35%, Sime Darby fell 0.43%, Sime Darby Plantations jumped 2.81%, Telekom Malaysia fell 0.83%, Tenaga Nasional gained 0.11%, Top Glove fell 3.61% and IOI Corporation and Public Bank remained unchanged.

Wall Street’s advance is negative as the major averages opened sharply lower, staged a midday rally but then faded at the close.

The Dow Jones lost 184.41 points or 0.57% to end at 32,098.99, while the NASDAQ lost 124.04 points or 1.02% to close at 12,017.67 and the S&P 500 lost 27.05 points or 0.67% to end at 4,030.61.

Worries about the interest rate outlook continued to weigh on markets after Federal Reserve Chairman Jerome Powell’s speech last week at the Jackson Hole Economics Symposium.

Powell’s remarks were more hawkish than investors would have liked, signaling that the Fed is likely to continue to aggressively raise interest rates and keep rates high for an extended period.

Business activity remained somewhat muted, however, as traders await Friday’s closely-watched monthly jobs report – which could also help determine the outlook for interest rates.

Crude oil prices rose sharply on Monday amid signs that OPEC will cut output if a deal with Iran to lift sanctions is reached. Crude oil for October delivery jumped $3.95 or 4% to $97.01 a barrel.

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