Malaysia Market May Test Support At 1,500 Points

The Malaysian stock market added less than a point on Tuesday - but that was enough to extend its winning streak to three sessions, gathering more than 15 points or 1 percent along the way. The Kuala Lumpur Composite Index remained just below the 1,510-point plateau, although now analysts are forecasting a soft start for the opening of trade on Wednesday.

The global forecast for the Asian markets calls for consolidation after several sessions of bargain hunting, while the UN campaign against Libya adds to the uncertainty. Properties and technology stocks are expected to decline, although rising oil prices should provide a measure of support. The European and U.S. markets finished lower on Tuesday, and the Asian bourses are tipped to follow that lead.

The KLCI finished flat on Tuesday but was nudged into the green by small gains from the financials and plantations.

For the day, the index added 0.22 points or 0.01 percent to finish at 1,509.10 after trading between 1,507.51 and 1,514.20. Volume was 1.43 billion shares worth 1.69 billion ringgit. There were 518 gainers and 250 decliners, with 275 stocks finishing unchanged.

Among the actives, Sime Darby and CIMB Holdings finished higher.
The lead from Wall Street is negative as stocks ended Tuesday's trading mostly lower, although selling pressure remained subdued, limiting the downside for the markets. Profit taking contributed to the modest weakness following the gains that were posted in the three previous sessions.

In economic news, Malaysia will on Wednesday provide February figures for its consumer price index, with analysts expecting the rate to come in at 2.7 percent - up from 2.4 percent in the previous month.

 

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