Malaysia Stock Market Expected To Remain Rangebound

(RTTNews) - The Malaysia stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had gathered almost a dozen points or 0.9 percent. The Kuala Lumpur Composite Index now rests just above the 1,380-point plateau although it figures to bounce higher again on Friday.

The global forecast for the Asian markets is upbeat on an improved outlook for interest rates. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to split the difference.

The KLCI finished slightly lower on Thursday following losses from the telecoms and industrials, support from the financials and a mixed picture from the plantation stocks.

For the day, the index dipped 3.69 points or 0.27 percent to finish at 1,381.73 after trading between 1,378.83 and 1,382.96.

Among the actives, Axiata plummeted 2.59 percent, while Celcomdigi fell 0.23 percent, CIMB Group gains 0.20 percent, Dialog Group shed 0.46 percent, Genting stumbled 1.43 percent, Genting Malaysia lost 0.39 percent, Inari tanked 2.01 percent, Kuala Lumpur Kepong advanced 0.65 percent, Maxis climbed 0.74 percent, MISC added 0.28 percent, MRDIY and Press Metal both sank 0.63 percent, Petronas Chemicals plunged 2.34 percent, PPB Group perked 0.13 percent, Public Bank collected 0.79 percent, Sime Darby tumbled 1.46 percent, Sime Darby Plantations declined 0.93 percent, Tenaga Nasional retreated 0.98 percent and RHB Capital, Maybank, IHH Healthcare, Telekom Malaysia, IOI Corporation and Nestle Malaysia were unchanged.

The lead from Wall Street is broadly positive as the major averages opened higher and accelerated as the day progressed, ending near session highs.

The Dow surged 428.73 points or 1.26 percent to finish at 34,408.06, while the NASDAQ jumped 156.34 points or 1.15 percent to end at 15,826.35 and the S&P 500 climbed 53.25 points or 1.22 percent to close at 4,425.84.

The rally on Wall Street reflected optimism about the outlook for interest rates following the release of some U.S. economic data. While the Federal Reserve forecast further rate hikes, traders seem hopeful the central bank will not follow through.

The optimism stemmed from a report from the Labor Department showing initial jobless claims held at their highest level last week since October 2021. A separate Labor Department report said import prices in the U.S. fell more than expected in May, also generating optimism about the outlook for inflation.

Crude oil prices rose sharply Thursday, buoyed by reports suggesting a jump in demand from Chinese refineries and additional stimulus from the Chinese central bank. The dollar's weakness also contributed to the jumped in oil prices. West Texas Intermediate Crude oil futures ended higher by $2.35 or 3.4 percent at $70.62 a barrel.