Malaysia Stock Market May Test Resistance At 1,500 Points

(RTTNews) - The Malaysia stock market on Friday snapped the three-day losing streak in which it had slipped nearly 25 points or 1.6 percent. The Kuala Lumpur Composite Index now sits just above the 1,485-point plateau and it may see additional support on Monday.

The global forecast for the Asian markets is upbeat on earnings expectations and news. The European markets were mixed and the U.S. markets were sharply higher and the Asian bourses are expected to follow the latter lead.

The KLCI finished modestly higher on Friday following gains from the plantation stocks and telecoms, while the financial shares were mixed.

For the day, the index added 7.19 points or 0.49 percent to finish at the daily high of 1,486.37 after trading as low as 1,477.05.

Among the actives, Axiata added 0.79 percent, while CIMB Group jumped 1.18 percent, Genting sank 0.64 percent, IHH Healthcare increased 0.67 percent, IOI Corporation slumped 0.25 percent, Kuala Lumpur Kepong improved 0.72 percent, Maybank collected 0.11 percent, MISC lost 0.55 percent, MRDIY soared 1.39 percent, Petronas Chemicals rose 0.30 percent, PPB Group eased 0.14 percent, Press Metal shed 0.62 percent, Public Bank advanced 0.93 percent, QL Resources fell 0.34 percent, RHB Capital slid 0.18 percent, Sime Darby spiked 1.22 percent, Sime Darby Plantations strengthened 1.14 percent, Telekom Malaysia rallied 1.21 percent, Tenaga Nasional gained 0.77 percent, YTL Corporation surged 2.35 percent, YTL Power climbed 1.12 percent and Genting Malaysia, Celcomdigi, Maxis and Petronas Gas were unchanged.

The lead from Wall Street is solid as the major averages opened slightly higher on Friday but accelerated throughout the day, sending the S&P and Dow to record closing highs.

The Dow jumped 395.20 points or 1.05 percent to finish at 37,863.80, while the NASDAQ surged 255.37 points or 1.70 percent to end at 15,310.97 and the S&P 500 rallied 58.87 points or 1.23 percent to close at 4,839.81.

For the holiday-shortened week, the NASDAQ soared 2.3 percent, the S&P 500 shot up 1.2 percent and the Dow advanced by 0.7 percent.

The run to record highs on Wall Street reflected continued strength among tech stocks ahead of this week's earning news from companies like Intel (INTC), IBM Corp. (IBM) and Netflix (NFLX).

Meanwhile, the Dow received a boost from a surge by shares of Travelers (TRV), with the insurance giant spiking by 6.7 after the company reported Q4 earnings that exceeded estimates.

Economic data also fueled the rally after the University of Michigan released a report showing a significant improvement in U.S. consumer sentiment and a continued decrease in inflation expectations.

Crude oil prices turned lower on Friday, reflecting profit taking after recent gains while traders also weighed concerns about Middle East tensions against uncertainty about the outlook for global demand. West Texas Intermediate Crude for February delivery fell $0.67 or 0.9 percent to $73.41 a barrel. The more actively trade March contract slumped $0.70 or 1.0 percent to $73.25 a barrel.

Closer to home, Malaysia will on Monday release December figures for consumer prices later; in November, inflation was flat on month and up 1.5 percent on year.