Malaysia Stock Market Poised To Hand Back Thursday’s Gains

The Malaysia stock market has alternated between positive and negative finishes through the last four trading days since the end of the five-day losing streak in which it had stumbled more than 25 points or 1.7 percent. The Kuala Lumpur Composite Index now rests just above the 1,520-point plateau and it’s predicted to head south again on Friday.

The global forecast for the Asian markets is soft on sinking crude oil prices and renewed Covid-19 concerns. The European markets were down and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The KLCI finished modestly higher on Thursday following gains from the glove makers and mixed performances from the financials and plantations.

For the day, the index gained 8.50 points or 0.56 percent to finish at 1,520.82 after trading between 1,511.60 and 1,523.95. Volume was 5.081 billion shares worth 3.499 billion ringgit. There were 612 gainers and 348 decliners.

Among the actives, CIMB Group collected 0.22 percent, while Dialog Group rallied 1.75 percent, Digi.com fell 0.48 percent, Genting accelerated 2.34 percent, Genting Malaysia spiked 2.55 percent, Hartalega Holdings soared 5.23 percent, IHH Healthcare jumped 1.06 percent, IOI Corporation advanced 0.54 percent, Kuala Lumpur Kepong shed 0.51 percent, Maxis added 0.46 percent, MISC sank 0.58 percent, MRDIY surged 5.41 percent, Petronas Chemicals was up 0.12 percent, PPB Group eased 0.11 percent, Press Metal perked 1.03 percent, Public Bank lost 0.49 percent, RHB Capital rose 0.19 percent, Sime Darby slid 0.46 percent, Sime Darby Plantations plummeted 4.81 percent, Telekom Malaysia was down 0.17 percent, Tenaga Nasional climbed 1.04 percent, Top Glove skyrocketed 7.45 percent and Axiata, Maybank, Hap Seng and Petronas Gas were unchanged.

The lead from Wall Street is something of a dichotomy as stocks opened lower on Thursday. The NASDAQ and S&P stayed in the red all day, but the Dow bounced back and forth across the unchanged line and managed a slightly higher finish.

The Dow added 53.79 points or 0.15 percent to finish at 34,987.02, while the NASDAQ sank 101.82 points or 0.70 percent to end at 14,543.13 and the S&P 500 fell 14.27 points or 0.33 percent to close at 4,360.03.

The weakness in the broader markets partly reflected concerns that some central banks around the world are considering tightening monetary policy much sooner than the Federal Reserve.

In economic news, the Federal Reserve said industrial production increased less than expected in June. Also, the Labor Department said first-time claims for unemployment benefits decreased in line with estimates last week.

Also, the Labor Department said U.S. import prices increased as expected last month, while separate reports from the New York Federal Reserve and the Philadelphia Federal Reserve showed mixed readings on the pace of growth in manufacturing activity in the two regions.

Crude oil prices declined sharply Thursday, sending the most active crude futures contracts to their lowest close in nearly a month amid rising concerns about outlook for energy demand. West Texas Intermediate Crude oil futures for August ended down by $1.48 or 2 percent at $71.65 a barrel, the lowest settlement since June 18.