Malaysia Stock Market May Add To Its Winnings On Thursday

The Malaysia stock market rebounded on Wednesday, one day after ending the four-day winning streak in which it had gained more than 40 points or 2.7 percent. The Kuala Lumpur Composite Index now rests just above the 1,490-point plateau and it may extend its gains on Thursday.

The global forecast for the Asian markets is upbeat on easing fears of a worldwide economic slowdown. The European and U.S. markets were sharply higher and the Asian markets are tipped to open in similar fashion.

The KLCI finished modestly lower on Wednesday following losses from the financial shares and telecoms, while the plantations and glove makers were mixed.

For the day, the index dipped 4.48 points or 0.30 percent to finish at the daily high of 1,490.57 after moving as low as 1,483.01. Volume was 1.908 billion shares worth 1.354 billion ringgit. There were 399 decliners and 367 gainers.

Among the actives, Sime Darby tumbled 2.07 percent, while Hartalega Holdings spiked 1.45 percent, MRDIY jumped 1.31 percent, Public Bank declined 1.07 percent, INARI rallied 1.06 percent, Top Glove retreated 1.02 percent, MISC slumped 0.83 percent, Petronas Gas climbed 0.83 percent, RHB Capital skidded 0.68 percent, Tenaga Nasional dropped 0.60 percent, Petronas Chemicals advanced 0.56 percent, Maybank sank 0.56 percent, Maxis shed 0.55 percent, Hong Leong Bank lost 0.48 percent, CIMB Group fell 0.38 percent, Genting Malaysia added 0.34 percent, Digi.com dipped 0.28 percent, Sime Darby Plantations gained 0.23 percent, Telekom Malaysia eased 0.18 percent and Genting, Hong Leong Financial, PPB Group, Dialog Group, IHH Healthcare, Axiata Group, Kuala Lumpur Kepong, Press Metal, IOI Corporation and Nestle all were unchanged.

The lead from Wall Street is broadly positive as the major averages opened firmly in the green and accelerated as the session progressed.

The Dow surged 416.33 points or 1.29 percent to finish at 32,812.50, while the NASDAQ spiked 319.40 points or 2.59 percent to end at 12,668.16 and the S&P 500 sank 63.98 points or 1.56 percent to close at 4,155.17.

The rebound on Wall Street partly reflected a positive reaction to some upbeat U.S. economic data, which helped ease concerns about a recession.

The Institute for Supply Management noted an unexpected acceleration in the pace of growth in U.S. services sector activity in July. Also, the Commerce Department saw a sharp increase in new orders for U.S. manufactured goods in June.

Crude oil prices fell sharply Wednesday after data showed an unexpected surge in U.S. crude inventories last week. The dollar’s strength after hawkish comments from a few Fed officials also weighed on oil prices.

Also, OPEC+ agreed to a tiny increase in output next month amid fears that a global recession will crimp demand. West Texas Intermediate Crude futures for September sank $3.76 or 4 percent at $90.66 a barrel.