Rebound Predicted For Malaysia Stock Market

(RTTNews) - The Malaysia stock market has alternated between positive and negative finishes through the last five trading days since the end of the two-day winning streak in which it had gathered more than 7 points or 0.5 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,430-point plateau although it figures to climb higher again on Wednesday.

The global forecast for the Asian markets is upbeat on bargain hunting and optimism ahead of earnings season. The European and U.S. markets were sharply higher and the Asian bourses are tipped to open in similar fashion.

The KLCI finished barely lower on Tuesday following mixed performances from the financials, plantations, telecoms and glove makers.

For the day, the index eased 0.78 points or 0.05 percent to finish at 1,428.76 after trading between 1,417.16 and 1,430.86. Volume was 1.731 billion shares worth 1.318 billion ringgit. There were 431 decliners and 330 gainers.

Among the actives, CIMB Group rose 0.20 percent, while Dialog Group tanked 1.47 percent, Genting and Hong Leong Financial both fell 0.22 percent, Genting Malaysia climbed 0.71 percent, Hartalega Holdings surged 1.85 percent, INARI sank 0.38 percent, IOI Corporation plunged 1.51 percent, Kuala Lumpur Kepong and Tenaga Nasional both retreated 0.75 percent, Maybank shed 0.23 percent, MRDIY added 0.48 percent, Petronas Chemicals jumped 0.97 percent, PPB Group tumbled 1.10 percent, Press Metal spiked 1.20 percent, Public Bank collected 0.23 percent, RHB Capital eased 0.18 percent, Sime Darby soared 1.78 percent, Sime Darby Plantations gained 0.24 percent, Telekom Malaysia rallied 1.10 percent, Top Glove plummeted 1.92 percent and Maxis, MISC, IHH Healthcare, Axiata and Digi.com were unchanged.

The lead from Wall Street is broadly positive as the major averages opened higher on Tuesday and only accelerated as the day progressed.

The Dow surged 754.44 points or 2.43 percent to finish at 31,827.05, while the NASDAQ spiked 353.10 points or 3.11 percent to close at 11,713.15 and the S&P 500 jumped 105.84 points or 2.76 percent to end at 3,936.69.

The rebound on Wall Street came as optimism about upcoming earnings news fueled a heavy wave of buying.

In earnings news, toymaker Hasbro (HAS) and oil services giant Halliburton (HAL) beat the street, while IBM Corp. (IBM) and Johnson & Johnson (JNJ) provided disappointing guidance.

In economic news, the Commerce Department unexpectedly reported a continued decline in housing starts in June.

Crude oil futures ended sharply higher Tuesday amid signs of tighter supplies in the global oil market, while the dollar's continued weakness also contributed to the sharp rise in oil prices. West Texas Intermediate Crude oil futures for August ended higher by $1.62 or 1.6 percent at $104.22 a barrel.