FX.co ★ Malaysia Shares May Take Further Damage On Wednesday

The Malaysian stock market has experienced a downward trend over the past four sessions, shedding over 25 points or 1.7 percent throughout this period. As a result, the Kuala Lumpur Composite Index (KLCI) currently stands just below the 1,610 mark, with predictions indicating a continued decline as trading resumes on Wednesday.

Globally, the forecast for Asian markets appears grim, driven by the anticipation of crucial U.S. inflation data to be released later today. Both European and U.S. markets have seen declines, potentially signaling similar behavior from Asian exchanges.

On the previous session, the KLCI inched slightly lower due to losses in the industrial and telecommunications sectors, which were balanced by gains in the financial and plantation sectors.

During Tuesday's trading, the index dipped by 0.83 points, or 0.05 percent, closing at 1,608.43, with trading fluctuating between 1,605.43 and 1,615.96.

Examining individual performances, Axiata fell by 2.64 percent, whereas Celcomdigi decreased by 0.91 percent. CIMB Group saw an increase of 0.49 percent. Genting and Genting Malaysia saw declines of 2.34 percent and 3.21 percent respectively. IHH Healthcare experienced a slight decrease of 0.14 percent, while IOI Corporation surged 2.53 percent. Kuala Lumpur Kepong rose by 1.16 percent, while Maxis declined by 1.93 percent. Meanwhile, Maybank increased by 1.35 percent, MRDIY by 0.94 percent, and Petronas Chemicals dropped by 4.13 percent. Other notable movements included a 0.42 percent gain for PPB Group and a 4.03 percent drop for Press Metal. Public Bank increased by 0.68 percent, QL Resources advanced by 0.83 percent, and RHB Bank dipped by 0.16 percent. Sime Darby saw a decline of 2.59 percent, SD Guthrie rose by 0.39 percent, Sunway increased by 0.22 percent. YTL Corporation and YTL Power saw minor losses and were down by 0.49 percent and 0.31 percent respectively. Telekom Malaysia, Tenaga Nasional, Petronas Dagangan, MISC, and Nestle Malaysia ended the day unchanged.

In the U.S., Wall Street showed modest softness as initial gains in major indices quickly turned into losses, ending the session on a negative note. The Dow Jones Industrial Average dropped 382.15 points, or 0.86 percent, to close at 43,910.98. Meanwhile, the NASDAQ fell by 17.36 points, or 0.09 percent, to 19,281.40, and the S&P 500 decreased by 17.36 points, or 0.29 percent, concluding at 5,983.99.

The decline in U.S. markets was attributed to profit-taking by traders aiming to capitalize on recent market strength following the U.S. elections. Additionally, traders adopted a cautious stance in anticipation of a pivotal consumer price inflation report due later in the day.

In commodity markets, oil prices showed slight upward movement on Tuesday, despite OPEC revising its global oil demand forecast for 2025 downward. This increase was tempered by the U.S. dollar's persistent strength. December futures for West Texas Intermediate Crude oil edged up by $0.08, reaching $68.12 per barrel.