Malaysia Bourse Expected To Run Out Of Steam

(RTTNews) - The Malaysia stock market has moved higher in two straight sessions, collecting more than 25 points of 1.7 percent along the way. The Kuala Lumpur Composite Index now sits just beneath the 1,640-point plateau although the rally may stall on Monday.

The global forecast for the Asian markets is negative on renewed pessimism over the outlook for interest rates. The European and U.S. markets were down and the Asian bourses figure to follow that lead.

The KLCI finished modestly higher on Friday following gains from the financials and industrials and mixed performances from the plantations and telecoms.

For the day, the index gained 12.42 points or 0.76 percent to finish at 1,637.81 after trading between 1,622.03 and 1,640.36. Among the actives, AMMB Holdings jumped 1.31 percent, while Axiata skidded 1.13 percent, CIMB Group lost 0.63 percent, Gamuda dropped 0.82 percent, IHH Healthcare spiked 2.50 percent, IOI Corporation increased 0.73 percent, Kuala Lumpur Kepong and PPB Group both eased 0.10 percent, Maxis improved 0.78 percent, Maybank collected 0.39 percent, MISC advanced 0.80 percent, MRDIY shed 0.67 percent, Nestle Malaysia sank 0.79 percent, Petronas Chemicals soared 2.97 percent, Petronas Dagangan added 0.52 percent, Petronas Gas rallied 2.43 percent, Press Metal gained 0.29 percent, Public Bank strengthened 1.13 percent, RHB Bank rose 0.13 percent, Sime Darby expanded 1.54 percent, SD Guthrie fell 0.19 percent, Sunway climbed 0.90 percent, Telekom Malaysia slumped 1.02 percent, Tenaga Nasional vaulted 2.20 percent, YTL Corporation surged 4.98 percent, YTL Power accelerated 2.49 percent and 99 Speed Mart Retail, Celcomdigi and QL Resources were unchanged.

The lead from Wall Street is soft as the major averages opened mixed but quickly turned lower and spent the balance of the session underwater.

The Dow dropped 245.96 points or 0.51 percent to finish at 48,458.05, while the NASDAQ tumbled 398.69 points or 1.69 percent to close at 23,195.17 and the S&P 500 sank 73.59 points or 1.07 percent to end at 6,827.41.

For the week, the Dow jumped 1.1 percent, the S&P 500 slid 0.6 percent and the NASDAQ dove 1.6 percent.

The weakness on Wall Street was fueled by losses on the NASDAQ, which saw heavy selling among the technology stocks on renewed concerns over valuations.

Weak sentiment was also generated by comments from Chicago Federal Reserve President Austan Goolsbee, who explained his decision to vote against cutting interest rates at last week's Fed meeting saying that more inflation data should have been necessary.

Crude oil prices weakened on Friday as traders kept an eye on the latest developments in the ongoing Russia-Ukraine conflict and escalating tensions between the U.S. and Venezuela. West Texas Intermediate crude for January delivery fell $0.20 or 0.4 percent at $57.40 per barrel.