Malaysia Bourse May Hand Back Monday's Gains

(RTTNews) - The Malaysia stock market on Monday ended the two-day losing streak in which it had dropped more than 20 points or 1.2 percent. The Kuala Lumpur Composite Index now sits just beneath the 1,625-point plateau although it figures to head south again on Tuesday.

The global forecast for the Asian markets is soft, with profit taking expected after recent strength. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.

The KLCI finished sharply higher on Monday following gains from the financial shares and telecoms, while the plantations and industrials also were mostly in the green.

For the day, the index collected 20.10 points or 1.25 percent to finish at 1,624.57 after trading between 1,608.26 and 1,625.42. Among the actives, 99 Speed Mart Retail gained 0.60 percent, while AMMB Holdings was up 1.01 percent, Axiata skyrocketed 8.71 percent, Celcomdigi improved 1.52 percent, CIMB Group rallied 3.92 percent, Gamuda dropped 0.93 percent, IHH Healthcare strengthened 1.69 percent, IOI Corporation added 1.00 percent, Kuala Lumpur Kepong plummeted 5.45 percent, Maxis fell 0.25 percent, Maybank collected 0.61 percent, MISC expanded 1.60 percent, MRDIY surged 7.95 percent, Nestle Malaysia spiked 4.40 percent, Petronas Chemicals soared 5.67 percent, Petronas Dagangan accelerated 3.94 percent, Petronas Gas eased 0.11 percent, PPB Group stumbled 3.82 percent, Press Metal jumped 2.83 percent, Public Bank perked 0.23 percent, QL Resources gathered 0.25 percent, RHB Bank increased 1.29 percent, Sime Darby climbed 1.54 percent, SD Guthrie rose 0.58 percent, Sunway retreated 1.28 percent, Telekom Malaysia vaulted 2.02 percent, Tenaga Nasional advanced 1.06 percent and YTL Corporation and YTL Power were unchanged.

The lead from Wall Street is weak as the major averages opened lower on Monday and remained in the red throughout the trading day.

The Dow tumbled 427.09 points or 0.90 percent to finish at 47,289.33, while the NASDAQ sank 89.76 points or 0.38 percent to close at 23,275.92 and the S&P 500 lost 36.46 points or 0.53 percent to end at 6,812.63.

The weakness on Wall Street came as traders looked to cash in on last week's rally, which saw the major averages stage a significant recovery from the sharp pullback seen in November.

The major averages had closed higher for five consecutive sessions last week, clawing their way back toward record highs.

Stocks had recently benefited from renewed optimism about the outlook for interest rates following dovish comments from leading Federal Reserve officials. However, the release of key U.S. economic data in the coming days could impact Fed officials' thinking.

Crude oil prices surged on Monday as the U.S. dollar came under pressure amid rate cut expectations. West Texas Intermediate crude for January delivery was up $0.75 or 1.28 percent at $59.30 per barrel.