Malaysia Bourse Tipped To Find Traction On Friday

The Malaysia stock market has finished lower in back-to-back trading days, sinking almost 20 points or 1.2 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,555-point plateau although it’s expected to stop the bleeding on Friday.

The global forecast for the Asian markets is positive on renewed optimism for economic recovery. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The KLCI finished modestly lower on Thursday following losses from the glove makers and entertainment stocks, gains from the plantations and a mixed bag from the financials.

For the day, the index shed 9.05 points or 0.58 percent to finish at 1,555.71 after trading between 1,554.15 and 1,567.59. Volume was 5.206 billion shares worth 3.028 billion ringgit. There were 916 decliners and 188 gainers.

Among the actives, Axiata sank 1.78 percent, while CIMB Group spiked 2.17 percent, Dialog Group plunged 2.71 percent, Digi.com lost 1.15 percent, Genting tanked 2.34 percent, Genting Malaysia dropped 1.71 percent, Hartalega Holdings plummeted 4.12 percent, IHH Healthcare skidded 1.92 percent, IOI Corporation added 0.52 percent, Kuala Lumpur Kepong rose 0.19 percent, Maxis slid 0.44 percent, MISC retreated 1.89 percent, MRDIY jumped 1.91 percent, PPB Group eased 0.11 percent, Press Metal declined 1.88 percent, Public Bank was down 0.24 percent, RHB Capital advanced 0.74 percent, Sime Darby shed 1.36 percent, Telekom Malaysia dipped 0.33 percent, Tenaga Nasional fell 0.60 percent, Top Glove tumbled 2.25 percent and Petronas Chemicals, Sime Darby Plantations, Maybank and Hap Seng Consolidated were unchanged.

The lead from Wall Street is firm as stocks opened solidly higher on Friday and remained comfortably in the green throughout the session.

The Dow spiked 322.58 points or 0.95 percent to finish at 34,196.82, while the NASDAQ jumped 97.98 points or 0.69 percent to end at 14,369.71 and the S&P 500 gained 24.65 points or 0.58 percent to close at 4,266.49.

The strength on Wall Street reflected a resumption of the upward momentum seen earlier in the week, which helped lift the Dow well off its lowest levels in over two months.

Positive sentiment may also have been generated in reaction to a Labor Department report showing a modest decrease in first-time claims for U.S. unemployment benefits last week.

News that President Joe Biden and a bipartisan group of Senators have reached an agreement on a new infrastructure plan may also have helped support the markets.

Crude oil futures settled slightly higher Thursday, continuing to benefit from data that showed a larger than expected drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for August ended up $0.22 or 0.3 percent at $73.30 per barrel.

Market Analysis