Malaysia Stock Market Poised To Extend Winning Streak

(RTTNews) - The Malaysia stock market has moved higher in six straight sessions, gathering almost 25 points or 1.6 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,465-point plateau and it may add to its winnings again on Tuesday.

The global forecast for the Asian markets is cautiously optimistic on hopes for an interest rate cut. The European markets were mixed and the U.S. bourses were modestly higher and the Asian markets are expected to split the difference.

The KLCI finished slightly higher again on Monday following gains from the financial shares and mixed performances from the plantations and telecoms.

For the day, the index perked 2.83 points or 0.19 percent to finish at 1,465.28 after trading between 1,460.42 and 1,468.74.

Among the actives, Axiata strengthened 1.69 percent, while Celcomdigi gathered 0.24 percent, CIMB Group jumped 1.89 percent, Dialog Group tumbled 1.52 percent, Genting retreated 1.49 percent, Genting Malaysia and Telekom Malaysia both sank 0.73 percent, IHH Healthcare and QL Resources both perked 0.17 percent, IOI Corporation declined 1.23 percent, Kuala Lumpur Kepong rose 0.28 percent, Maxis slumped 1.03 percent, MRDIY plunged 3.36 percent, Petronas Chemicals rallied 0.56 percent, PPB Group spiked 1.96 percent, Press Metal skidded 1.01 percent, Public Bank collected 0.93 percent, RHB Capital gained 0.36 percent, Sime Darby dropped 0.82 percent, Sime Darby Plantations fell 0.22 percent, Tenaga Nasional added 0.40 percent, Westports Holdings surged 2.23 percent and Maybank and MISC were unchanged.

The lead from Wall Street is mostly positive as the major averages opened higher on Monday and largely stayed that way, although the Dow struggled to stay in the green.

The Dow rose 0.86 points or 0.00 percent to finish at 37,306.02, while the NASDAQ advanced 90.89 points or 0.61 percent to close at 14,904.81 and the S&P 500 gained 21.37 points or 0.45 percent to end at 4,740.56.

The major averages have moved higher for seven consecutive weeks due in part to optimism about the outlook for interest rates, with last week's rally coming as the Federal Reserve's latest projections hinted at three rate cuts next year.

However, several Fed officials have subsequently pushed back on investor hopes that rate cuts by the central bank are imminent. Nonetheless, CME Group's FedWatch Tool still suggests there is a good chance the Fed will lower interest rates by a quarter point in March.

In economic news, the National Association of Home Builders released a report showing homebuilder sentiment in the U.S. rebounded in December after falling for four consecutive months.

Oil prices rose sharply on Monday on rising tensions in the Middle Ease due to recent attacks on ships crossing the Red Sea, which have raised supply concerns. West Texas Intermediate Crude oil futures for January ended higher by $1.04 or 1.44 percent at $72.47 a barrel.

Closer to home, Malaysia will provide November numbers for imports, exports and trade balance later today. Imports are expected to fall 0.8 percent on year after easing 0.2 percent in October. Exports are called lower by an annual 4.0 percent after sinking 4.4 percent in the previous month. The trade surplus is pegged at 17.40 billion ringgit, up from 12.90 billion ringgit a month earlier.