The Malaysia stock market on Wednesday wrote a finish to the three-day slide in which it had fallen almost 25 points or 1.7 percent. The Kuala Lumpur Composite Index now rests just above the 1,570-point plateau and it may add to its winnings on Thursday.
The global forecast for the Asian markets is broadly positive on slightly easing geopolitical concerns and more bargain hunting, especially among technology stocks. The European and U.S. markets were solidly higher and the Asian bourses are tipped to follow suit.
The KLCI finished modestly higher on Wednesday following gains from the financials and telecoms, while the plantations were mixed and the glove makers were soft.
For the day, the index advanced 13.91 points or 0.89 percent to finish at the daily high of 1,571.32 after moving as low as 1,554.26. Volume was 2.593 billion shares worth 2.711 billion ringgit. There were 732 gainers and 263 decliners.
Among the actives, Axiata increased 1.06 percent, while CIMB Group soared 4.13 percent, Dialog Group strengthened 2.26 percent, Digi.com advanced 1.78 percent, Genting rallied 1.86 percent, Genting Malaysia climbed 1.82 percent, Hartalega Holdings plummeted 2.97 percent, IHH Healthcare slumped 0.47 percent, INARI surged 5.00 percent, Kuala Lumpur Kepong tumbled 1.38 percent, Maybank jumped 2.65 percent, Maxis accelerated 2.70 percent, MISC and MRDIY both lost 0.28 percent, Petronas Chemicals improved 1.20 percent, Petronas Gas dipped 0.12 percent, PPB Group perked 0.24 percent, Press Metal spiked 3.92 percent, Public Bank and Tenaga Nasional both gained 0.89 percent, RHB Capital added 1.56 percent, Sime Darby shed 0.44 percent, Sime Darby Plantations rose 0.61 percent, Telekom Malaysia gathered 1.23 percent, Top Glove plunged 2.78 percent and IOI Corporation and Hong Leong Bank were unchanged.
The lead from Wall Street is upbeat as the major averages opened sharply higher on Wednesday and remained firmly in the green throughout the trading day.
The Dow surged 518.76 points or 1.55 percent to finish at 34,063.10, while the NASDAQ soared 487.93 points or 3.77 percent to end at 13,437.55 and the S&P 500 jumped 95.41 points or 2.24 percent to close at 4,357.86.
The rally came after the Fed announced its widely expected decision to raise interest rates for the first time since December of 2018 in an effort to combat inflation at 40-year highs. The Fed raised the target range for the federal funds rate by 25 basis points to 0.25 to 0.5 percent.
The central bank also predicted ongoing rate hikes will be appropriate, with the Fed’s latest projections pointing to an interest rate of 1.9 percent by the end of the year. It also expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting.
Optimism about a potential diplomatic solution to the ongoing Russian invasion of Ukraine also generated buying interest. Ukrainian President Volodymyr Zelenskyy said during an address to the nation that the positions in the negotiations were beginning to “sound more realistic.”
Crude oil prices dropped Wednesday, extending losses to a third straight session after data showed a surprise surge in U.S. crude inventories, and amid hopes of some progress in Russia-Ukraine peace talks. West Texas Intermediate Crude oil futures for April ended lower by $1.40 or 1.5 percent at $95.04 a barrel.
Market Analysis
Malaysia Stock Market Has A Green Light For Thursday’s Trade
2022-03-16 23:30:23
