Malaysia Stock Market May Find Traction On Friday

The Malaysia stock market has moved lower in consecutive trading days, falling more than 15 points or 1 percent along the way. The Kuala Composite Index now rests just above the 1,575-point plateau although it’s likely to stop the bleeding on Friday.

The global forecast for the Asian markets is positive, with bargain hunting expected to provide a boost, especially among oversold technology stocks. The European and U.S. markets were firmly higher and the Asian markets are expected to follow suit.

The KLCI finished slightly lower on Thursday following mixed performances from the financial shares, plantations and glove makers.

For the day, the index fell 5.20 points or 0.33 percent to finish at 1,575.32 after trading between 1,570.32 and 1,585.32. Volume was 6.739 billion shares worth 4.574 billion ringgit. There were 832 decliners and 288 gainers.

Among the actives, Axiata sank 0.84 percent, CIMB Group spiked 1.19 percent, Dialog Group jumped 1.04 percent, Digi.com tumbled 1.91 percent, Genting skidded 1.51 percent, Genting Malaysia declined 1.15 percent, Hartalega Holdings was up 0.10 percent, IOI Corporation lost 0.49 percent, Kuala Lumpur Kepong rallied 1.09 percent, Maybank dipped 0.12 percent, Maxis tanked 2.14 percent, MISC rose 0.15 percent, Petronas Chemicals shed 0.50 percent, PPB Group added 0.32 percent, Press Metal plunged 2.50 percent, Public Bank collected 0.24 percent, RHB Capital advanced 0.58 percent, Sime Darby Plantations climbed 0.91 percent, Supermax plummeted 3.39 percent, Tenaga Nasional dropped 0.70 percent, Top Glove retreated 1.47 percent and Sime Darby, Telekom Malaysia, IHH Healthcare and Hap Seng Consolidated were unchanged.

The lead from Wall Street is upbeat as the major averages opened higher on Thursday and picked up steam as the day progressed, cutting into the losses from the previous two days.

The Dow jumped 188.11 points or 0.55 percent to finish at 34,084.15, while the NASDAQ spiked 236.00 points or 1.77 percent to end at 13,535.74 and the S&P 500 advanced 43.44 points or 1.06 percent to close at 4,159.12.

The support on Wall Street came in reaction to the sell-off in the previous session, with upbeat earnings and optimism about global economic recovery helping to offset inflation worries and fears about monetary easing.

In economic news, the Labor Department said unemployment claims in the U.S. dropped last week to their lowest since the week ended March 14. Also, the Philadelphia Fed Manufacturing Index fell in May from a 50-year high in April.

Crude oil prices fell sharply Thursday, extending losses to a third straight day as signs of progress in Iran nuclear talks raised expectations that global crude supply will see a surge in the near term. West Texas Intermediate Crude oil futures for June ended down by $1.31 or 2.1 percent at $62.05 a barrel on the expiration day.