The FBM KLCI was in the red throughout the trading day but losses were limited. Note that the benchmark index’s close for Monday was revised to 1,216.5 points, from the initial 1,210.6 points, after taking into account the last-minute surge in KL Kepong’s share price. The latter was due to an erroneous order. Bursa Malaysia rejected the request to cancel the trade.

Unsurprisingly, KL Kepong was the top loser on Tuesday. Its share price dropped back to RM13.70 giving back all of its last-minute gains from the previous day. The FBM KLCI ended the day nearly four points lower at 1,212.7.

At the close, there were 11 losing counters for every 10 gainers. About 643 million shares changed hands. Shares of Three-A Resources were among the most actively traded. The stock closed at 89.5 sen, giving back some of its gains from the previous day. The company announced a private placement to Wilmar International Ltd, the world’s largest palm oil trader.

Elsewhere, in a rather surprising move, Australia became the first of major economies to raise interest rates since the onset of the global financial crisis in 4Q2008. The central bank hiked rates by 25 basis points, to 3.25%, strongly suggesting the economy is well on its way to recovery.

This is in contrast with the note of caution struck by leaders of the G20 during its recent meeting, which warned against an early withdrawal of stimulus measures given the fragility of the nascent recovery.

Market analysts had expected countries to move away from extremely loose monetary policies next year. Australia’s unexpected decision may prompt other hawkish central banks, especially in Asia, to bring forward their own schedule.