The Malaysian stock market resumed its downward trajectory on Wednesday, following a brief halt to a five-day losing streak that saw a dip of over 25 points or 1.6 percent. The Kuala Lumpur Composite Index (KLCI) now hovers just below the 1,640-point mark, with expectations of a rebound on Thursday.The outlook for Asian markets appears positive, buoyed by optimism regarding interest rates. While European markets displayed mixed results, U.S. stock exchanges saw gains, suggesting a similar upward trend for Asian markets.On Wednesday, the KLCI experienced significant losses primarily from plantation stocks and mixed outcomes from financial and telecom sectors. The index declined by 20.55 points, or 1.24 percent, closing at 1,639.80, after fluctuating between 1,638.90 and 1,654.38.Notable performances included Axiata, which fell 1.98 percent, while Celcomdigi rose 1.62 percent. CIMB Group plunged 2.59 percent, Genting dropped 1.90 percent, Genting Malaysia decreased 1.23 percent, and IHH Healthcare declined 1.60 percent. IOI Corporation saw a slight dip of 0.52 percent, while Kuala Lumpur Kepong tumbled 1.70 percent. Maybank gained 0.28 percent, and MISC shed 1.14 percent. MRDIY fell 1.00 percent, Petronas Chemicals and Nestle Malaysia each slumped 1.47 percent. PPB Group dropped 1.26 percent, while Press Metal edged up 0.22 percent. Public Bank plunged 2.29 percent, RHB Capital skidded 1.27 percent, Sime Darby retreated 1.74 percent, SD Guthrie lost 1.10 percent, Sunway tumbled 1.75 percent, and Telekom Malaysia advanced 0.61 percent. Tenaga Nasional increased 0.27 percent, YTL Corporation was down 0.83 percent, YTL Power added 0.59 percent, and Maxis and QL Resources remained unchanged.The positive lead from Wall Street came as major indices overcame early weaknesses to close near session highs. The Dow Jones Industrial Average rose by 124.75 points, or 0.31 percent, to 40,861.71. The NASDAQ surged by 369.65 points, or 2.17 percent, to 17,395.53, and the S&P 500 rallied by 58.61 points, or 1.07 percent, to 5,554.13.Initial selling pressure on Wall Street followed the release of the Labor Department’s consumer price inflation report for August. The report confirmed that consumer prices increased in line with economists’ estimates, although core consumer prices rose slightly more than anticipated. This data initially dampened hopes of a significant 50 basis point rate cut by the Federal Reserve in the upcoming week. However, as the session progressed, selling pressure eased on expectations that the Fed would continue to lower rates in the coming months.Additionally, crude oil prices surged on Wednesday, recovering from a three-year low experienced in the previous session. This rebound was fueled by concerns over prolonged production shutdowns in the offshore oil sector due to Hurricane Francine. West Texas Intermediate Crude oil futures for October rose by $1.56, or 2.37 percent, closing at $67.31 per barrel.The material has been provided by InstaForex Company – www.instaforex.com
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