Renewed Support Anticipated For Malaysia Shares

The Malaysia stock market has alternated between positive and negative finishes through the last six trading days since the end of the four-day losing streak in which it had fallen more than a dozen points or 0.9 percent. The Kuala Lumpur Composite Index now sits just above the 1,435-point plateau although it’s likely to rebound again on Thursday.

The global forecast for the Asian markets is positive on optimism over the outlook for interest rates. The European and U.S. markets were solidly higher and the Asian markets are expected to open in similar fashion.

The KLCI finished modestly lower on Wednesday following losses from the telecoms and mixed performances from the financial shares and plantations.

For the day, the index slipped 6.81 points or 0.47 percent to finish at 1,435.33 after trading between 1,434.93 and 1,441.59.

Among the actives, Celcomdigi retreated 0.71 percent, while CIMB Group lost 0.18 percent, Dialog Group plummeted 4.19 percent, Genting Malaysia and MISC both sank 0.41 percent, IHH Healthcare fell 0.17 percent, IOI Corporation and Tenaga Nasional both declined 0.51 percent, Kuala Lumpur Kepong eased 0.09 percent, Maxis jumped 1.01 percent, MRDIY rallied 2.03 percent, Petronas Chemicals plunged 2.72 percent, PPB Group perked 0.13 percent, Press Metal tanked 2.03 percent, Public Bank shed 0.24 percent, Sime Darby tumbled 0.87 percent, Sime Darby Plantations was up 0.06 percent, Westports Holdings advanced 0.89 percent and Genting, RHB Capital, Maybank, Telekom Malaysia, Axiata and AMMB Holdings were unchanged.

The lead from Wall Street is strong as the major averages opened flat on Wednesday but took off as the day progressed, ending near session highs.

The Dow surged 221.71 points or 0.67 percent to finish at 33,274.58, while the NASDAQ rallied 210.23 points or 1.64 percent to end at 13,061.47 and the S&P 500 climbed 44.06 points or 1.05 percent to close at 4,237.86.

The strength on Wall Street came as stocks reacted positively to the Federal Reserve’s widely expected decision to leave interest rates unchanged.

The accompanying statement suggested the Fed is still considering additional rate hikes in an effort to return inflation to its 2 percent objective, but traders seem optimistic the recent cycle of increase is over.

In economic news, payroll processor ADP said private sector employment in the U.S. increased less than expected in October. Also, the Institute for Supply Management said manufacturing activity in the U.S. unexpectedly contracted at a faster rate last month.

Oil futures settled lower on Wednesday, weighed down by concerns that higher borrowing costs will likely hurt growth and the outlook for fuel demand. West Texas Intermediate Crude oil futures for December ended down $$0.58 or 0.7 percent at $80.44 a barrel.

Closer to home, the central bank in Malaysia will conclude its monetary policy meeting today and then announce its decision on interest rates; the bank is expected to keep its benchmark lending rate steady at 3.00 percent.