FX.co ★ Malaysia Stock Market May Hand Back Tuesday's Gains

On Tuesday, the Malaysian stock market recovered from a two-day dip, failing to shed a single point or 0.1 percent. It's understood that the Kuala Lumpur Composite Index is currently barely maintaining the 1,530-points threshold, with projections leaning towards a downward trend for Wednesday.

Globally, predictions foresee a generally negative impact on Asian markets due to rising pessimism regarding future interest rate trends. In line with this forecast, the European and U.S. markets reported major losses, which is expected to apply significant pressure on Asian markets upon opening.

However, the Kuala Lumpur Composite Index (KLCI) reported considerable gains on Tuesday, driven by advancements in financial shares, plantation stocks, and telecoms. For the day, the KLCI gained 19.09 points or 1.26 percent, closing at 1,531.37 points after ranging from 1,512.63 and 1,533.16.

Notable market movers included Axiata, Celcomdigi, CIMB Group, Genting Malaysia, IHH Healthcare, IOI Corporation, Kuala Lumpur Kepong, Maxis, Maybank, Petronas Chemicals, MISC, Sime Darby, MRDIY, Press Metal, Public Bank, QL Resources, RHB Capital, Sime Darby Plantations, Tenaga Nasional, YTL Power, and YTL Corporation, all of which experienced varying degrees of change. Conversely, Genting, PPB Group, Telekom Malaysia, and AMMB Holdings remained stagnant.

The Wall Street trend appears to suggest a period of consolidation as major indices opened significantly lower and maintained that position throughout the day. Following the publication of a highly awaited Labor Department report detailing a greater than expected rise in U.S. consumer prices in January, Wall Street experienced a sell-off. The Federal Reserve has cited a need for greater assurance that inflation is decelerating prior to reducing interest rates, thereby impacting optimism about upcoming rate cuts.

The news led to a surge in Treasury yields, with the benchmark ten-year note hitting a two-month high. Amid continued Middle Eastern tensions causing concern about supply, Tuesday saw an increase in oil prices. As a result, West Texas Intermediate crude oil futures for March climbed by $0.95 or 1.25 percent to hit $77.87 a barrel, marking the seventh consecutive upward session.