On Tuesday, the Malaysian stock market ended its three-day losing streak during which it had dropped over 25 points, or 1.6 percent. The Kuala Lumpur Composite Index (KLCI) is now positioned just above the 1,655-point mark but is expected to decline again on Wednesday.
The global outlook for Asian markets is tepid due to escalating geopolitical tensions in the Middle East. European markets presented a mixed performance, while U.S. markets experienced declines, which Asian markets are likely to mirror.
The KLCI closed modestly higher on Tuesday, driven by gains in financial stocks and mixed outcomes in plantation and telecommunications shares.
For the day, the index increased by 7.48 points, or 0.45 percent, to close at 1,656.39, after fluctuating between 1,643.11 and 1,657.32.
Key performers included:
- Axiata, which fell by 0.79 percent
- Celcomdigi, up by 0.54 percent
- CIMB Group, gaining 0.50 percent
- Genting, adding 0.71 percent
- Genting Malaysia, increasing 0.83 percent
- IHH Healthcare, improving 1.12 percent
- IOI Corporation, down by 0.53 percent
- Kuala Lumpur Kepong, spiking 2.24 percent
- Maxis, shedding 0.51 percent
- Maybank, collecting 0.57 percent
- MISC, jumping 1.67 percent
- MRDIY, tumbling 1.89 percent
- Petronas Chemicals, surging 2.84 percent
- Petronas Dagangan, soaring 2.58 percent
- Petronas Gas, easing 0.11 percent
- PPB Group, strengthening 1.24 percent
- Press Metal, falling 0.20 percent
- Public Bank, advancing 1.10 percent
- QL Resources, dropping 0.64 percent
- RHB Bank, gaining 0.65 percent
- Sime Darby, perking up 0.41 percent
- SD Guthrie, retreating 0.84 percent
- Sunway, climbing 1.19 percent
- Telekom Malaysia, up by 0.15 percent
- Tenaga Nasional, losing 0.28 percent
- YTL Power, rallying 1.37 percent
- YTL Corporation, unchanged
The U.S. markets delivered a negative lead as the major averages opened lower on Tuesday and stayed in the red throughout the session. The Dow Jones Industrial Average dropped 173.18 points, or 0.41 percent, to finish at 42,156.97. The NASDAQ plummeted 278.81 points, or 1.53 percent, to close at 17,910.36, while the S&P 500 sank 53.73 points, or 0.93 percent, to end at 5,708.75.
The weakness on Wall Street was attributed to rising tensions in the Middle East after Iran launched a ballistic missile attack on Israel. This action was reported by Iran's Islamic Revolutionary Guard Corps as a response to the death of Hezbollah leader Hassan Nasrallah and others in recent Israeli airstrikes.
Earlier in the day, a senior White House official indicated that the U.S. had information suggesting Iran was preparing to imminently launch a ballistic missile attack against Israel, leading to an early stock sell-off.
This news overshadowed other reports showing a continued contraction in U.S. manufacturing activity for September and an unexpected rise in U.S. job openings in August.
Oil prices climbed on Tuesday due to the potential for tight supplies amid increased tensions in the Middle East, following Iran's missile attack on Israel. West Texas Intermediate Crude oil futures for November closed up $1.66, or nearly 2.5 percent, at $69.83 a barrel.