Bursa Malaysia Market Review : Malaysia Stocks May Extend Losing Streak

By : Tokan Corner

 

Malaysia Stocks May Extend Losing Streak

 

The Malaysian stock market has finished lower now in back-to-back sessions, falling more than 15 points or 0.9 percent along the way. The Kuala Lumpur Composite Index settled just below the 1,580-point plateau, and now traders are bracing for continued softness when the market kicks off trade on Wednesday.

 

The global forecast for the Asian markets remains negative thanks to ongoing debt issues in Europe. Technology stocks are likely to be under pressure, along with telecoms and airlines - although gold, oil and other commodities are expected to provide support. The European and U.S. markets finished firmly in the red again, and the Asian bourses also are expected to trend to the downside.

 

The KLCI finished modestly lower on Tuesday following losses from the financial shares, industrial issues and plantation stocks.

 

For the day, the index dropped 10.48 points or 0.66 percent to finish at 1,578.10 after trading between 1,574.52 and 1,587.69. Volume was 832.78 million shares worth 1.55 billion ringgit. There were 602 decliners and 167 gainers, with 288 stocks finishing unchanged.

 

Among the actives, Kuala Lumpur Kepong, PPB, Petronas Chemicals, MISC, CIMB Group and Hong Leong Financial all finished lower and Axiata ended slightly higher.

 

In economic news, industrial production in Malaysia declined 5.1 percent from a year earlier in May after a downwardly revised 1.7 percent growth in April, the Department of Statistics said on Monday. Economists were expecting a 2.6 percent decline. On a monthly basis, total industrial output fell 1.3 percent. During the first five months of the year, output grew 0.2 percent compared to the same period last year.

 

 

Also, Malaysia's manufacturing sector sales value increased at a slower pace in May, the Department of Statistics said on Monday. The sales value advanced 8 percent year-on-year compared to a revised 15.2 percent rise in April. Meanwhile, it fell by 3.7 percent on month. The monthly decrease in the sales value in May was the result in the drop of the sales value of 50 of the 116 industries in the survey.