Additional Support Anticipated For Malaysia Stock Market

The Malaysia stock market on Wednesday snapped the two-day winning streak in which it had gathered almost 15 points or 0.9 percent. The Kuala Lumpur Composite Index now rests just above the 1,605-point plateau and it’s expected to extend its gains on Thursday.

The global forecast for the Asian markets is cautiously optimistic on encouraging corporate results and rising crude oil prices. The European and U.S. markets mostly saw mild upside and the Asian bourses are tipped to follow suit.

The KLCI finished barely higher on Wednesday following mixed performances from the financials, plantations and glove makers.

For the day, the index rose 0.35 points or 0.02 percent to finish at 1,606.32 after trading between 1,601.31 and 1,613.35. Volume was 4.295 billion shares worth 3.113 billion ringgit. There were 618 decliners and 512 gainers.

Among the actives, CIMB Group soared 2.08 percent, while Dialog Group plunged 2.30 percent, Digi.com spiked 0.92 percent, Genting retreated 1.50 percent, Genting Malaysia tanked 2.13 percent, Hartalega Holdings shed 0.65 percent, Hong Leong Bank was up 0.32 percent, IHH Healthcare sank 0.90 percent, IOI Corporation dropped 0.74 percent, Kuala Lumpur Kepong gained 0.35 percent, Maxis rallied 0.83 percent, MISC eased 0.14 percent, MRDIY slid 0.27 percent, Petronas Chemicals added 0.57 percent, PPB Group dipped 0.22 percent, Press Metal plummeted 2.43 percent, Public Bank collected 0.95 percent, RHB Capital tumbled 1.87 percent, Sime Darby skidded 1.29 percent, Sime Darby Plantations declined 1.38 percent, Telekom Malaysia fell 0.51 percent, Tenaga Nasional lost 0.61 percent, Top Glove surged 3.62 percent and Axiata and Maybank were unchanged.

The lead from Wall Street is mostly positive as the major averages opened higher on Wednesday. The Dow and S&P 500 remained well in the green and finished that way, while the NASDAQ hugged the unchanged line and ended slightly in the red.

The Dow climbed 152.03 points or 0.43 percent to finish at 35,609.34, while the NASDAQ dipped 7.41 points or 0.05 percent to close at 15,121.68 and the S&P 500 rose 16.56 points or 0.37 percent to end at 4,536.19.

The continued strength on Wall Street came as traders reacted positively to another batch of largely upbeat corporate earnings news.

Traders largely shrugged off the Federal Reserve’s Beige Book, which noted the pace of U.S. economic growth has recently slowed due to supply chain disruptions, labor shortages, and uncertainty around the Delta variant of COVID-19.

The Fed also said employment increased at a modest to moderate rate in recent weeks, as demand for workers was high, but labor growth was dampened by a low supply of workers.

Crude oil prices climbed higher on Wednesday after data showed a drop in U.S. crude inventories last week, while increased demand also supported prices. West Texas Intermediate Crude oil futures for December ended up by $0.98 or 1.2 percent at $83.42 a barrel.