ZLBT Morning Views >>> Malaysian Stocks May Extend Losses

Bulls Cautious Of Bear's Ambush

The Malaysian stock market has finished lower in consecutive trading days, easing just 4 points or 0.3 percent in that span. The FBM KLCI Benchmark Index finished just above the 1,530-point plateau, and now traders are bracing for further if mild downside at the opening of trade on Wednesday. Bursa expected to drift without new leads or catalysts to boost sentiments.

The global forecast for the Asian markets calls for consolidation with metal stocks and other resource plays expected to see selling pressure - although financials may provide a bit of support on bargain hunting. The European markets ended lower and the U.S. bourse finished mixed, and the Asian markets also figure to track to the downside.
 

The FBM KLCI finished slightly lower again on Tuesday as softness from the financial shares and industrial issues was offset by gains from the plantation stocks.
For the day, the index eased 3.48 points or 0.23 percent to finish at 1,531.47 after trading between 1,530.05 and 1,537.85. Volume was 1.007 billion shares worth 1.247 billion ringgit. There were 519 decliners and 255 gainers, with 262 stocks finishing unchanged.

Among the actives, Maybank and Tenaga Nasional finished lower, while Hong Leong Bank, EON Capital and Axiata ended higher.

The lead from Wall Street is mixed with a hint of pessimism as stocks moved mostly lower over the course of the trading session on Tuesday, with traders cashing in on some of the recent strength in the markets. Selling pressure was somewhat subdued, however, and the Dow ended the session nearly unchanged.

While the Dow closed slightly higher, the broader NASDAQ and S&P 500 ended the day in the red. The Dow edged up by 0.15 points or less than a tenth of a percent to 12,807.51, while the NASDAQ fell 22.46 points or 0.8 percent to 2,814.62 and the S&P 500 slipped 4.60 points or 0.3 percent to 1,356.62.

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