Rebound Predicted For Malaysia Stock Market

The Malaysia stock market headed south again on Wednesday, one session after ending the seven-day losing streak in which it had tumbled more than 70 points or 4.1 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,530-point plateau although it’s expected to bounce higher again on Thursday.

The global forecast for the Asian markets is upbeat, riding a surge in crude oil prices. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

The KLCI finished slightly lower on Wednesday following mixed performances from the financial shares and plantations, while support from the glove makers limited the downside.

For the day, the index eased 1.42 points or 0.09 percent to finish at 1,529.02 after trading between 1,520.71 and 1,529.79. Volume was 4.12 billion shares worth 3.163 billion ringgit. There were 584 gainers and 382 decliners.

Among the actives, Axiata plunged 2.44 percent, while CIMB Group collected 0.42 percent, Dialog Group dropped 0.43 percent, Digi.com skidded 0.67 percent, Genting increased 0.20 percent, Genting Malaysia retreated 0.66 percent, Hartalega Holdings soared 2.72 percent, IHH Healthcare advanced 0.45 percent, IOI Corporation lost 0.27 percent, Kuala Lumpur Kepong was up 0.10 percent, Maybank tumbled 1.10 percent, Maxis tanked 1.69 percent, MISC gained 0.29 percent, MRDIY fell 0.26 percent, Petronas Chemicals spiked 1.13 percent, PPB Group dipped 0.11 percent, Press Metal jumped 1.07 percent, Public Bank rose 0.25 percent, RHB Capital added 0.37 percent, Sime Darby Plantations shed 0.28 percent, Telekom Malaysia sank 0.51 percent, Tenaga Nasional eased 0.10 percent, Top Glove surged 5.24 percent and Sime Darby was unchanged.

The lead from Wall Street is solid as the major averages opened higher on Wednesday and remained in the green throughout the session.

The Dow spiked 3.38 points or 1.00 percent to finish at 34,258.32, while the NASDAQ jumped 150.45 points or 1.02 percent to end at 14,896.85 and the S&P 500 perked 41.45 points or 0.95 percent to close at 4.395.64.

The early rally on Wall Street came as traders picked up stocks at reduced levels following the slump seen during the month of September.

Stocks held on to strong gains even as the Federal Reserve hinted tapering of its asset purchases could begin in the near future amid continued progress towards it goals of maximum employment and price stability.

During his post-meeting press conference, Fed Chair Jerome Powell indicated the central bank could begin tapering its asset purchases as soon as its next meeting in early November.

Crude oil prices climbed on Wednesday after data showed a larger than expected drop in U.S. crude stockpiles last week. West Texas Intermediate crude oil futures for November ended up $1.74 or 2.5 percent at $72.23 a barrel.