Renewed Support Anticipated For Malaysia Shares

(RTTNews) - The Malaysia stock market headed south again on Thursday, one day after ending the five-day losing streak in which it had tumbled almost 65 points or 4.6 percent. The Kuala Lumpur Composite Index now rests just above the 1,390-point plateau although it's predicted to bounce higher again on Friday.

The global forecast for the Asian markets is upbeat on easing concerns over the ability of financial markets. The European and U.S. markets were sharply higher and the Asian bourses are expected to follow that lead.

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

For the day, the index sank 12.33 points or 0.88 percent to finish at 1,391.60 after trading between 1,391.04 and 1,403.93.

Among the actives, Axiata and Maxis both plunged 2.34 percent, while CIMB Group and IHH Healthcare both surrendered 1.53 percent, Dialog Group tanked 2.13 percent, Digi.com and Tenaga Nasional both sank 0.74 percent, Genting gained 0.66 percent, Genting Malaysia fell 0.38 percent, INARI declined 1.26 percent, IOI Corporation tumbled 1.58 percent, Maybank slumped 1.08 percent, MISC shed 0.70 percent, MRDIY plummeted 2.37 percent, Petronas Chemicals eased 0.14 percent, Press Metal stumbled 1.04 percent, Public Bank lost 0.51 percent, RHB Capital dropped 0.72 percent, Sime Darby skidded 0.93 percent, Telekom Malaysia retreated 1.23 percent and Kuala Lumpur Kepong, PPB Group, Sime Darby Plantations and QL Resources were unchanged,

The lead from Wall Street is broadly positive as the major averages quickly shook off a soft start on Thursday and accelerated firmly into positive territory, finishing near session highs.

The Dow surged 371.98 points or 1,17 percent to finish at 32,246.55, while the NASDAQ rallied 283.22 points or 2.48 percent to end at 11,717.28 and the S&P 500 jumped68.35 points or 1.76 percent to close at 3,960.28.

Stocks rallied following news that 11 banks including JPMorgan Chase (JPM) and Morgan Stanley (MS) have pledged $30 billion to support First Republic Bank (FRC) to shore up the beleaguered lender.

News that Credit Suisse will borrow up to $54 billion from the Swiss central bank to shore up liquidity and investor confidence also helped ease recent concerns about turmoil in the banking sector.

In economic news, the Labor Department said first-time claims for U.S. unemployment benefits pulled back more than expected last week. Also, the Labor Department reported that import prices edged slightly lower in February.

Crude oil prices climbed higher Thursday on reports that Saudi Arabia's energy minister and Russia's deputy prime minister met to discuss about ways to enhance market stability. West Texas Intermediate Crude oil futures for April climbed $0.74 or 1.1 percent at $68.35 a barrel.

Closer to home, Malaysia will provide February numbers for imports, exports and trade balance later today. Imports are expected to rise 6.8 percent on year, up from 2.3 percent in January. Exports are called higher by an annual 4.5 percent, accelerating from 1.5 percent in the previous month. The trade surplus is pegged at MYR18.30 billion, up from MYR18.20 billion.