Malaysia Stock Market May Extend Tuesday's Losses

The Malaysia stock market has alternated between positive and negative finishes through the last four trading days since the end of the four-day losing streak in which it had stumbled almost 50 points or 3.2 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,635-point plateau and it may take further damage on Wednesday.

The global forecast for the Asian markets is soft as traders take a wait-and-see attitude regarding stimulus and coronavirus vaccines. The European markets were mixed and the U.S. bourses slightly lower and the Asian markets figure to split the difference.

The KLCI finished modestly lower on Tuesday following losses from the plantations and glove makers, while the financials came in mixed.

For the day, the index sank down 8.91 points or 0.54 percent to finish at 1,634.99 after trading between 1,630.83 and 1,645.76. Volume was 9.091 billion shares worth 4.199 billion ringgit. There were 601 decliners and 559 gainers.

Among the actives, Supermax plummeted 5.16 percent, while Hartalega Holdings plunged 4.17 percent, Top Glove tanked 3.99 percent, Dialog Group surged 1.75 percent, Petronas Chemicals tumbled 1.60 percent, Sime Darby Plantations skidded 1.55 percent, PPB Group retreated 1.38 percent, Telekom Malaysia spiked 1.30 percent, CIMB Group rallied 1.16 percent, Genting declined 1.10 percent, Axiata surrendered 1.07 percent, MISC advanced 0.89 percent, Genting Malaysia added 0.74 percent, Maybank collected 0.47 percent, IOI Corporation sank 0.45 percent, Sime Darby added 0.44 percent, Maxis shed 0.39 percent, Public Bank lost 0.38 percent, IHH Healthcare gained 0.35 percent, Digi.com fell 0.24 percent, RHB Capital slid 0.18 percent and Tenaga Nasional, Press Metal and Kuala Lumpur Kepong were unchanged.

The lead from Wall Street is mildly negative as stocks failed to sustain an initial move to the upside and moved modestly lower over the course of the trading session on Tuesday.

The Dow shed 68.30 points or 0.22 percent to finish at 30,335.67, while the NASDAQ sank 49.20 points or 0.38 percent to end at 12,850.22 and the S&P 500 fell 8.32 points or 0.22 percent to close at 3,727.04.

Stocks initially benefited from window dressing, as some fund managers looked to further boost their portfolios going into the end of the year. The initial advance lifted the major averages to new record intraday highs, although buying interest waned shortly after the start of trading.

Traders also kept an eye on developments in Washington after President Donald Trump signed a coronavirus relief and government spending bill over the weekend.

Trump called for the direct payments included in the bill to be increased to $2,000 from $600, and the House voted Monday to approve a measure increasing the size of the stimulus checks. However, Senate Majority Leader Mitch McConnell, R-Ken., blocked an effort by Senate Minority Leader Chuck Schumer, D-N.Y., to unanimously approve the House bill.

Crude oil prices moved higher on Tuesday amid hopes energy demand will pick up if U.S. policymakers decide to provide additional stimulus to boost economic growth. West Texas Intermediate Crude oil futures for February ended higher by $0.38 or 0.8 percent at $48.00 a barrel.

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