The Malaysia stock market on Wednesday wrote a finish to the three-day winning streak in which it had gathered more than 10 points or 0.7 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,435-point plateau and the losses may accelerate on Thursday.
The global forecast for the Asian markets is soft on concerns over interest rates and the economy. The European markets were up and the U.S. bourses were down and the Asian markets are tipped to follow the latter lead.
The KLCI finished slightly lower on Wednesday following mixed performances from the financials, telecoms and industrials, while the plantations offered support.
For the day, the index dipped 1.15 points or 0.08 percent to finish at 1,434.74 after trading between 1,429.00 and 1,437.08.
Among the actives, Axiata skidded 0.66 percent, while CIMB Group gained 0.38 percent, Dialog Group and INARI both slumped 0.83 percent, Digi.com was down 0.23 percent, Genting rose 0.22 percent, Genting Malaysia climbed 1.13 percent, IHH Healthcare sank 0.51 percent, IOI Corporation added 0.53 percent, Kuala Lumpur Kepong spiked 1.67 percent, Maxis advanced 0.97 percent, Maybank lost 0.34 percent, MISC fell 0.28 percent, Petronas Chemicals perked 0.14 percent, PPB Group declined 1.20 percent, Press Metal dropped 0.58 percent, Public Bank collected 0.75 percent, RHB Capital eased 0.18 percent, Sime Darby improved 0.93 percent, Sime Darby Plantations retreated 1.15 percent, Telekom Malaysia jumped 1.82 percent, Tenaga Nasional tumbled 1.31 percent and MRDIY, AMMB Holdings and Nestle Malaysia were unchanged.
The lead from Wall Street is negative as the major averages opened higher on Wednesday and bounced back and forth across the unchanged line before finally settling in the red.
The Dow shed 38.29 points or 0.11 percent to finish at 33,646.50, while the NASDAQ slumped 102.54 points or 0.85 percent to end at 11,929.34 and the S&P 500 lost 16.99 points or 0.41 percent to close at 4,091.95.
Stocks initially benefited from a positive reaction to a Labor Department report showing U.S. consumer prices increased by less than expected in the month of March.
Stocks turned lower over the course of the morning, however, as many economists said they still expect the Federal Reserve to raise interest rates by another quarter point early next month.
While buying interest reemerged later in the session, stocks moved back to the downside after the minutes of the latest Fed meeting suggested the recent banking sector turmoil could lead to a recession.
Crude oil prices moved spiked on Wednesday as tamer-than-expected inflation data contributed to an extended pullback in the value of the U.S. dollar. West Texas Intermediate for May delivery shot up $1.73 or 2.1 percent to $83.26 a barrel.
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