Malaysia Stock Market May Extend Friday's Gains

(RTTNews) - The Malaysia stock market on Friday wrote a finish to the four-day losing streak in which it had dropped almost 50 points or 2.6 percent. The Kuala Lumpur Composite Index now rests just above the 1,565-point plateau and it may extend its gains on Monday.

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

The KLCI finished modestly higher on Friday following gains from the industrials and mixed performances from the plantations, telecoms and financials.

For the day, the index gathered 11.18 points or 0.72 percent to finish at 1,566.72 after trading between 1,545.67 and 1,569.43.

Among the actives, 99 Speed Mart Retail improved 0.88 percent, while Axiata was up 0.44 percent, Celcomdigi fell 0.27 percent, CIMB Group dipped 0.13 percent, Gamuda lost 0.47 percent, IHH Healthcare gained 0.56 percent, IOI Corporation slumped 0.80 percent, Maxis and MISC both sank 0.56 percent, MRDIY climbed 1.17 percent, Nestle Malaysia shed 0.50 percent, Petronas Chemicals strengthened 1.30 percent, Petronas Dagangan rallied 2.08 percent, Petronas Gas tumbled 1.49 percent, Press Metal advanced 1.04 percent, Public Bank collected 1.14 percent, QL Resources dropped 0.65 percent, Sime Darby soared 2.80 percent, SD Guthrie added 0.63 percent, Sunway accelerated 2.44 percent, Telekom Malaysia jumped 1.57 percent, Tenaga Nasional surged 3.66 percent, YTL Corporation rose 0.46 percent, YTL Power spiked 2.63 percent and Kuala Lumpur Kepong, PPB Group, Maybank and RHB Bank were unchanged.

The lead from Wall Street is broadly upbeat as the major averages opened solidly higher on Friday and stayed that way throughout the trading day, ending near session highs.

The Dow jumped 334.73 points or 0.78 percent to finish at 43,487.83, while the NASDAQ rallied 291.90 points or 1.51 percent to close at 19.630.20 and the S&P 500 advanced 59.30 points or 1.00 percent to end at 5,996.66.

For the week, the Dow soared 3.7 percent, the S&P jumped 2.9 percent and the NASDAQ climbed 2.5 percent.

Stocks benefitted from the recent decrease by treasury yields even as the yield on the benchmark ten-year note recovered from an early slump to end the day roughly flat. The recent retreat by treasury yields came as the U.S. inflation data released over the past few days led to renewed optimism about the outlook for interest rates.

Adding to the interest rate optimism, Federal Reserve Governor Christopher Waller told CNBC the central bank could lower interest rates multiple times this year if inflation eases as he is expecting.

Crude oil prices showed a notable move to the downside on Friday, extending the sharp pullback seen in the previous session. West Texas Intermediate for February delivery was down $0.80 or 1 percent to $77.88 a barrel on Friday; for the week, crude rose about 1 percent.

Closer to home, Malaysia will provide December data for imports, exports and trade balance later today. Imports are expected to rise 3.3 percent on year, up from 1.6 percent in November. Exports are called higher by an annual 9.0 percent, accelerating from 4.1 percent in the previous month. The trade surplus is pegged at MYR16.60 billion, up from MYR15.30 billion a month earlier.