Oversold Malaysia Bourse Tipped To Open In The Red Again

(RTTNews) - The Malaysia stock market has finished lower in eight straight sessions, sinking more than 100 points or 6.9 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,465-point plateau and it's tipped to open in the red again on Tuesday.

The global forecast for the Asian markets is broadly negative on fears of n economic slowdown and concerns over the outlook for interest rates. The European and U.S. markets were sharply lower and the Asian markets are expected to follow that lead.

The KLCI finished sharply lower on Monday with losses from the financials, plantations, telecoms and glove makers.

For the day, the index dropped 29.12 points or 1.95 percent to finish at 1,464.83 after trading between 1,458.85 and 1,483.76.

Among the actives, Axiata stumbled 3.04 percent, while CIMB Group lost 2.18 percent, Dialog Group tanked 4.15 percent, Digi.com shed 2.21 percent, Genting sank 2.26 percent, Genting Malaysia slumped 2.69 percent, Hartalega Holdings plunged 8.06 percent, IHH Healthcare surrendered 3.57 percent, INARI cratered 4.04 percent, IOI Corporation slid 0.73 percent, Kuala Lumpur Kepong retreated 3.12 percent, Maybank and Press Metal both lost 0.80 percent, Maxis declined 3.24 percent, MISC weakened 2.78 percent, MRDIY tumbled 3.75 percent, Petronas Chemicals dipped 1.44 percent, PPB Group fell 2.02 percent, Public Bank was down 1.10 percent, RHB Capital slid 1.86 percent, Sime Darby eased 0.45 percent, Sime Darby Plantations dropped 2.59 percent, Telekom Malaysia sank 0.99 percent, Tenaga Nasional dipped 1.73 percent and Top Glove plummeted 8.85 percent.

The lead from Wall Street is brutal as the major averages opened sharply lower on Monday and only got worse as the day progressed, ending deep in the red.

The Dow plummeted 876.05 points or 2.79 percent to finish at 30,516 billion baht, while the NASDAQ plunged 530.80 points or 4.68 percent to close at 10,809.23 and the S&P 500 dropped 151.23 points or 3.88 percent to close at 3,749.63.

The extended sell-off on Wall Street reflected lingering concerns about inflation and the outlook for interest rates after last Friday's report showing a jump in consumer prices.

The Federal Reserve is scheduled to announce its latest monetary policy decision on Wednesday, with the central bank expected to continuing raising interest rates in an effort to combat inflation.

While the Fed's rate hikes have been widely anticipated for months, traders seem increasingly concerned tighter monetary policy could trigger a period of stagflation or an outright recession.

Crude oil futures rebounded from early losses and settled modestly higher on Monday as concerns about global supplies outweighed demand worries. West Texas Intermediate Crude oil futures for July ended higher by $0.26 or 0.2 percent at $120.93 a barrel.