Malaysia Stock Market Tipped To See Additional Strength

The Malaysia stock market has moved higher in two of three trading days since the end of the three-day losing streak in which it had stumbled more than 20 points or 1.3 percent. The Kuala Lumpur Composite Index now rests just above the 1,495-point plateau and it may add to its winnings on Friday.

The global forecast for the Asian markets is upbeat, with support expected from oil and technology stocks in particular. The European markets were mixed and the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.

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

For the day, the index perked 4.45 points or 0.30 percent to finish at 1,495.78 after trading between 1,491.01 and 1,498.92. Volume was 4.690 billion shares worth 2.421 billion ringgit. There were 517 gainers and 435 decliners.

Among the actives, Axiata rallied 1.08 percent, while CIMB Group added 0.89 percent, Dialog Group climbed 1.16 percent, Digi.com surged 2.63 percent, Genting dropped 0.66 percent, Genting Malaysia tumbled 1.47 percent, Hartalega Holdings rose 0.15 percent, IHH Healthcare gained 0.18 percent, IOI Corporation jumped 1.37 percent, Kuala Lumpur Kepong shed 0.52 percent, Maybank collected 0.37 percent, Maxis accelerated 1.39 percent, MISC and Hap Seng both advanced 0.91 percent, MRDIY spiked 1.50 percent, Press Metal perked 0.21 percent, RHB Capital fell 0.38 percent, Sime Darby lost 0.47 percent, Sime Darby Plantations soared 2.08 percent, Telekom Malaysia slid 0.35 percent, Tenaga Nasional skidded 1.12 percent, Top Glove sank 0.79 percent and Petronas Chemicals, Petronas Gas, PPB Group and Public Bank were unchanged.

The lead from Wall Street is solid as the major averages opened firmly in the green and stayed there throughout the session.

The Dow jumped 271.58 points or 0.78 percent to finish at 35,064.25, while the NASDAQ climbed 114.58 points or 0.78 percent to close at 14,895.12 and the S&P 500 perked 26.44 points or 0.60 percent to end at 4,429.10.

The strength on Wall Street followed the Labor Department report showing a modest decrease in first-time claims for U.S. unemployment benefits last week, sparking optimism ahead of the closely-watched monthly job report later today.

Also, the Commerce Department said the U.S. trade deficit widened more than expected in June, reaching a new record high.

Crude oil prices rebounded Thursday, regaining ground after moving sharply lower over the three previous sessions. After plummeting by 7.8 percent so far this week, crude for September delivery advanced $0.94 or 1.4 percent to $69.09 a barrel.