Rebound Predicted For Malaysia Stock Market

(RTTNews) - Ahead of Thursday's holiday for the birth of the Prophet Muhammad, the Malaysia stock market had alternated between positive and negative finishes through the last five trading days, ultimately sinking 10 points or 0.7 percent in the process. The Kuala Lumpur Composite Index now sits just above the 1,440-point plateau and it figures to bounce higher again on Friday.

The global forecast for the Asian markets is positive, with bargain hunting expected among easing treasury yields. The European and U.S. markets were up and the Asian bourses figure to follow suit.

The KLCI finished modestly lower on Wednesday following mixed performances from the financial shares, plantation stocks and telecoms.

For the day, the index shed 5.44 points or 0.38 percent to finish at 1,440.11 after trading between 1,436.75 and 1,441.87.

Among the actives, Axiata rallied 2.02 percent, while Dialog Group climbed 0.93 percent, Genting skidded 0.71 percent, Genting Malaysia and Petronas Dagangan both slumped 0.79 percent, IHH Healthcare added 0.59 percent, IOI Corporation rose 0.25 percent, Kuala Lumpur Kepong gained 0.37 percent, Maxis retreated 0.98 percent, Maybank collected 0.11 percent, MRDIY dropped 0.66 percent, Petronas Chemicals plunged 1.50 percent, PPB Group sank 0.64 percent, Press Metal shed 0.62 percent, Public Bank tumbled 1.19 percent, RHB Capital dipped 0.18 percent, Sime Darby advanced 0.91 percent, Sime Darby Plantations declined 0.92 percent, Telekom Malaysia fell 0.20 percent, Tenaga Nasional improved 0.80 percent, Westports Holdings lost 0.30 percent and Petronas Gas, Celcomdigi, CIMB Group and MISC were unchanged.

The lead from Wall Street is upbeat as the major averages shook off early weakness on Thursday and moved firmly higher, although ending well of the daily highs.

The Dow climbed 116.07 points or 0.35 percent to finish at 33,666.34, while the NASDAQ jumped 108.43 points or 0.83 percent to close at 13,201.28 and the S&P 500 rose 25.19 points or 0.59 percent to end at 4,299.70.

The strength on Wall Street reflected bargain hunting, as traders picked up stocks at reduced levels following recent weakness.

A downturn by treasury yields also contributed to the strength among stocks, with the yield on the benchmark 10-year note giving back ground after reaching its highest levels since October 2007.

In economic news, the Commerce Department said the pace of U.S. economic growth in the second quarter of 2023 was unrevised from the previous estimate. Also, the Labor Department noted a slight increase in first-time claims for U.S. unemployment benefits last week.

Oil futures failed to hold gains and fell sharply on Thursday, due largely on profit taking. Oil prices rose to one-year high earlier in the day after recent data showing a drop in crude inventories in the U.S. West Texas Intermediate Crude oil futures for November ended down $1.97 or 2.1 percent at $91.71 a barrel.