The Malaysia stock market on Thursday snapped the six-day winning streak in which it had climbed almost 40 points or 2.5 percent. The Kuala Lumpur Composite Index now sits just beneath the 1,570-point plateau and the losses may accelerate on Friday.
The global forecast for the Asian markets is sift on concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.
The KLCI finished slightly lower on Thursday following mixed performances from the financial shares, plantation stocks and telecoms.
For the day, the index dipped 2.23 points or 0.14 percent to finish at 1,569.25 after trading between 1,569.03 and 1,574.45.
Among the actives, Axiata sank 0.37 percent, while Celcomdigi added 0.24 percent, CIMB Group rose 0.15 percent, Genting tumbled 1.75 percent, Genting Malaysia declined 1.13 percent, IHH Healthcare advanced 0.81 percent, IOI Corporation skidded 0.49 percent, Kuala Lumpur Kepong gained 0.17 percent, Maybank fell 0.18 percent, Petronas Chemicals stumbled 1.74 percent, Press Metal retreated 1.45 percent, Public Bank dropped 0.47 percent, QL Resources rallied 1.42 percent, RHB Capital eased 0.18 percent, Sime Darby slumped 0.71 percent, Telekom Malaysia shed 0.33 percent, YTL Corporation surged 2.21 percent, YTL Power climbed 0.98 percent and Sime Darby Plantations, Maxis, MISC, MRDIY, PPB Group, Tenaga Nasional and AMMB Holdings were unchanged.
The lead from Wall Street is negative as the major averages opened lower on Thursday and remained solidly in the red throughout the session.
The Dow plunged 375.12 points or 0.98 percent to finish at 38,085.80, while the NASDAQ tumbled 100.99 points or 0.64 percent to close at 15,611.76 and the S&P 500 sank 23.21 points or 0.46 percent to end at 5,048.42.
A negative reaction to earnings news from Meta Platforms (META) and tech giant IBM Corp. (IBM) contributed to the early sell-off on Wall Street.
In economic news, the Commerce Department released a report showing the U.S. economy grew by much less than expected in the first quarter of 2024. Also, the Commerce Department said the personal consumption expenditures price index climbed more than expected.
Both of those economic results were bad news for investors as they damaged the likelihood of an interest rate cut by the Federal Reserve in the near future.
Crude oil futures settled higher on Thursday, recovering from recent losses, despite data showing slower than expected U.S. first-quarter GDP growth. West Texas Intermediate Crude oil futures for June ended higher by $0.76 or about 0.92% at $83.57 a barrel.
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