KUALA LUMPUR: The Malaysia stock market has moved lower in three consecutive trading days, sliding almost 15 points or 0.8 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,735-point plateau and it’s in line for further damage on Wednesday.
The global forecast for the Asian markets is negative thanks to uncertainty over U.S. tax reform and a decline in crude oil prices. The European and U.S. markets were down and the Asian bourses figure to follow suit. The KLCI finished slightly lower on Tuesday following losses from the plantations and industrials, while the financials and telecoms were mixed.
For the day, the index sank 3.88 points or 0.22 percent to finish at 1,733.61 after trading between 1,733.31 and 1,744.61. Volume was 3 billion shares worth 2.6 billion ringgit. There were 588 decliners and 300 gainers.
Among the actives, Maybank jumped 1.97 percent, while CIMB Group lost 0.65 percent, Sime Darby shed 0.33 percent, IOI Corporation skidded 1.36 percent, Kuala Lumpur Kepong fell 0.24 percent, Petronas Chemicals slid 0.67 percent, MISC added 0.14 percent, Telekom Malaysia plunged 1.80 percent and Tenaga Nasional was unchanged.
The lead from Wall Street is soft as stocks opened lower on Tuesday, regained some ground but still finish in the red – offsetting modest gains from the previous session. The Dow shed 30.23 points or 0.13 percent to 23,409.47, while the NASDAQ lost 19.72 points or 0.29 percent to 6,737.87 and the S&P 500 fell 5.97 points or 0.23 percent to 2,578.87.
Uncertainty about the outlook for the Republican tax reform proposal weighed as the House prepares to vote on their bill later this week. The House bill has significant differences from the Senate version, raising concerns about whether GOP lawmakers will be able to combine the legislation.
In economic news, the Labor Department reported that producer prices increased more than expected in October – as did core producer prices. Energy stocks showed a significant move to the downside on Tuesday amid a steep drop by the price of crude oil – which tumbled $1.06 to $55.70 a barrel for December delivery.
