Malaysia Stock Market May Extend Monday's Gains

(RTTNews) - The Malaysia stock market bounced higher again on Monday, one session after ending the two-day winning streak in which it had gathered just 3 points or 0.2 percent. The Kuala Lumpur Composite Index now sits just above the 1,585-point plateau and it may see additional support on Tuesday. The global forecast for the Asian markets is upbeat on optimism over the outlook for interest rates. The European and U.S. markets were modestly higher and the Asian bourses are expected to follow that lead. The KLCI finished modestly higher on Monday following gains from the financial shares, plantation stocks and industrials. For the day, the index added 7.44 points or 0.47 percent to finish at 1,585.59 after trading between 1,579.57 and 1,587.16. Among the actives, Axiata jumped 1.65 percent, while Celcomdigi slumped 1.08 percent, CIMB Group lost 0.41 percent, Gamuda added 0.54 percent, IHH Healthcare gathered 0.14 percent, Kuala Lumpur Kepong gained 0.40 percent, Maxis rose 0.28 percent, Maybank and Hong Leong Bank both were up 0.10 percent, MISC perked 0.13 percent, MRDIY tumbled 3.16 percent, Nestle Malaysia increased 0.82 percent, Petronas Chemicals surged 5.00 percent, Petronas Dagangan strengthened 1.56 percent, Petronas Gas dropped 0.86 percent, PPB Group soared 3.12 percent, Press Metal shed 0.54 percent, Public Bank collected 0.23 percent, QL Resources fell 0.24 percent, RHB Bank climbed 1.23 percent, Sime Darby accelerated 2.46 percent, SD Guthrie advanced 1.19 percent, Telekom Malaysia sank 0.71 percent, Tenaga Nasional rallied 1.99 percent, YTL Corporation improved 1.20 percent, YTL Power spiked 2.72 percent and 99 Speed Mart Retail, AMMB Holdings, IOI Corporation and Sunway were unchanged.

The lead from Wall Street is cautiously optimistic as the major averages opened mixed on Monday but all finished with modest gains.

The Dow climbed 114.09 points or 0.25 percent to finish at 45,514.95, while the NASDAQ advanced98.31 points or 0.45 percent to close at 21,798.70 and the S&P 500 rose 13.65 points or 0.21 percent to end at 6,495.15.

The strength on Wall Street reflected optimism about the outlook for interest rates following last Friday's weaker-than-expected U.S. employment data.

Following the release of a closely watched report showing employment increased by much less than expected in the month of August, CME Group's FedWatch Tool is currently indicating a 90.2 percent chance the Fed will lower rates by a quarter point later this month.

Overall trading activity was subdued, however, as traders looked ahead to the release of consumer and producer price inflation later this week, which could also impact the outlook for rates.

Crude oil moved higher Monday on the threat of sanctions hanging over Russia on its oil exports, although the upside was limited by OPEC's decision Sunday to increase output. West Texas Intermediate crude for October delivery was up $0.53 or 0.86 percent at $62.40 per barrel.