Malaysia Bourse May Hand Back Monday's Gains

(RTTNews) - The Malaysia stock market on Monday snapped the three-day slide in which it had dropped more than 30 points or 1.9 percent. The Kuala Lumpur Composite Index now rests just above the 1,635-point plateau although it may head south again on Tuesday. The global forecast for the Asian markets is soft, ahead of key economic and earnings data later this week. The European markets were mixed and flat and the U.S. bourses were solidly lower and the Asian markets are tipped to follow the latter lead. The KLCI finished modestly higher on Monday following gains from the plantation stocks and telecoms, while the financial sector came in mixed. For the day, the index picked up 5.32 points or 0.33 percent to finish at 1,635.29 after trading between 1,628.12 and 1,637.29. Among the actives, Axiata slumped 0.82 percent, while Celcomdigi improved 1.38 percent, CIMB Group rose 0.51 percent, Genting strengthened 1.45 percent, Genting Malaysia accelerated 2.12 percent, IOI Corporation added 0.54 percent, Kuala Lumpur Kepong gathered 0.48 percent, Maxis jumped 1.92 percent, MISC advanced 1.04 percent, MRDIY rallied 1.96 percent, Petronas Chemicals gained 0.52 percent, PPB Group spiked 2.78 percent, Press Metal soared 3.66 percent, Public Bank collected 0.66 percent, QL Resources and SD Guthrie both were up 0.21 percent, RHB Bank sank 0.48 percent, Sime Darby surged 4.15 percent, Sunway increased 0.72 percent, Telekom Malaysia climbed 1.40 percent, Tenaga Nasional tumbled 2.10 percent, YTL Corporation perked 0.41 percent, YTL Power retreated 1.11 percent and IHH Healthcare, Maybank and Nestle Malaysia were unchanged.

The lead from Wall Street is weak as the major averages opened lower on Monday and only moved lower as the day progressed, ending near session lows.

The Dow tumbled 398.51 points or 0.94 percent to finish at 41,954.24, while the NASDAQ plunged 213.95 points or 1.18 percent to close at 17,923.90 and the S&P 500 sank 55.13 points or 0.96 percent to end at 5,695.94.

The weakness on Wall Street came as traders reassessed their expectations for the outlook on interest rates. After Friday's upbeat jobs data, traders now expect only a quarter-point cut in interest rates at the Federal Reserve's next policy announcement on Nov. 7.

The mood is cautious as investors await readings on consumer price and producer price inflation later in the week, as well as earnings announcements from several top banks.

On the geopolitical front, Israeli defense forces intensified air strikes targeting Gaza and the Lebanese capital of Beirut simultaneously on the first anniversary of Hamas' cross-border attack in Israel, which triggered the Middle East war.

Oil prices rose sharply on Monday amid the rising possibility of disruptions in supply in the Persian Gulf due to escalating tensions in the Middle East. West Texas Intermediate Crude oil futures for November jumped $2.76 or 3.71 percent at $77.14 a barrel, the highest close in nearly eight weeks.