Malaysia Stock Market Expected To Halt Losing Streak

The Malaysia stock market has moved lower in seven straight sessions, sinking more than 40 points or 2.5 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,565-point plateau although it’s overdue for support on Friday.

The global forecast for the Asian markets is upbeat on expectations for solid earnings news and support from crude oil prices. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The KLCI finished sharply lower on Thursday with damage across the board – especially from the glove makers and plantations.

For the day, the index tumbled 16.22 points or 1.02 percent to finish at the daily low of 1,566.86 after peaking at 1,581.49. Volume was 4.049 billion shares worth 2.732 billion ringgit. There were 624 decliners and 422 gainers.

Among the actives, Axiata sank 1.00 percent, while CIMB Group fell 0.57 percent, Dialog Group plummeted 4.67 percent, Digi.com and IHH Healthcare both slipped 0.46 percent, Genting was down 0.38 percent, Genting Malaysia lost 0.62 percent, Hartalega Holdings skidded 1.23 percent, IOI Corporation retreated 1.24 percent, Kuala Lumpur Kepong tanked 2.94 percent, Maybank eased 0.25 percent, Maxis stumbled 2.08 percent, MISC surrendered 1.68 percent, MRDIY slid 0.53 percent, Petronas Chemicals slumped 1.02 percent, PPB Group perked 0.22 percent, Press Metal plunged 4.21 percent, Public Bank weakened 0.71 percent, RHB Capital rose 0.18 percent, Sime Darby dropped 0.87 percent, Sime Darby Plantations declined 1.43 percent, Telekom Malaysia shed 0.68 percent, Tenaga Nasional dipped 0.52 percent and Top Glove tumbled 2.63 percent.

The lead from Wall Street is broadly positive as the major averages opened firmly higher on Thursday and stayed in the green throughout the trading day.

The Dow jumped 239.79 points or 0.68 percent to finish at 35,730.48, while the NASDAQ spiked 212.28 points or 1.39 percent to close at 15,448.12 and the S&P 500 gained 44.74 points or 0.98 percent to end at 4,596.42.

A positive reaction to the latest batch of earnings news from big-name companies helped stocks renew the upward trend seen in recent sessions, fueled by the likes of Ford (F), Brewer Anheuser-Busch InBev (BUD), Caterpillar (CAT) and Merck (MRK).

Adding to the positive sentiment, a report from the Labor Department showed initial jobless claims fell for the fourth straight week last week.

Crude oil futures settled marginally higher Thursday, recovering from an early setback as prices were weighed down by data showing an increase in U.S. crude inventories and the prospect of Iranian crude entering the market. West Texas Intermediate crude oil futures for December ended up by $0.15 or 0.2 percent at $82.81 a barrel.

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