FX.co ★ Malaysia Shares May See Mild Support On Wednesday

The Malaysian stock market, measured by the Kuala Lumpur Composite Index, has been on a downward trend over the past four consecutive sessions, dropping by more than 25 points, equivalent to a 1.7% decline. The Composite Index currently hovers slightly above the 1,540-point mark and is predicted to continue this pattern on the forthcoming Wednesday.

The global market forecast for Asian economies signals minimal fluctuation, with opposing forces of stock discounting and interest rate worries at play. The European markets experienced a downtrend, while the U.S markets showed a mixed and flat trajectory, a pattern expected to be mirrored by Asian markets.

On Tuesday, the KLCI ended on a slightly lower note due to losses in the financial and telecom sectors, whereas the plantation sector had mixed results. The index fell by 7.53 points or 0.49%, closing at 1,535.00, after trading between 1,532.49 and 1,541.59 points.

Among the active stocks, YTL Corporation suffered a steep decline of 4.62%, while Celcomdigi rose by 2.94% and YTL Power fell by 2.30%. Similarly, other heavily traded stocks, such as Press Metal and AMMB Holdings, experienced a fluctuation in their share prices, shifting by 1.92% and 1.91% respectively.

On Wall Street, the significant market indices displayed minimal movement on Tuesday and concluded the trading day with mixed results. The Dow Jones rose by 63.86 points or 0.17%, ending at 37,798.97, while the NASDAQ dropped by 19.77 points or 0.12% to conclude at 15,865.25. The S&P 500 experienced mild losses of 10.41 points or 0.21%, finishing at 5,051.41.

This uncertain market movement is attributed to investors contemplating the opportunity to purchase stocks at lower prices versus the apprehension surrounding the future of interest rates.

US industrial production data's continued increase, as shown in a recent Federal Reserve report, caused the yield on the benchmark ten-year note to reach its highest midday levels in nearly half a year. Federal Reserve Chair Jerome Powell further added to these concerns by implying that interest rates may remain elevated for a longer period due to a "lack of progress" towards achieving the central bank's inflation objectives.

Crude oil prices were also unstable on Tuesday before slowly declining after Janet Yellen, U.S. Treasury Secretary, suggested plans for new sanctions on Iran following their attack on Israel. West Texas Intermediate crude oil, set for May delivery, dipped by $0.05 or 0.1%, closing at $85.36 per barrel.