Little Movement Seen For Malaysia Stock Market

(RTTNews) - The Malaysia stock market has alternated between positive and negative finishes through the last seven trading days since the end of the two-day winning streak in which it had gathered almost 10 points or 0.6 percent. The Kuala Lumpur Composite Index now sits just above the 1,515-point plateau and it's expected to remain rangebound again on Tuesday. The global forecast for the Asian markets in positive on an improved outlook for interest rates. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The KLCI finished modestly higher on Monday following gains from the financial shares and mixed performances from the plantations and industrials.

For the day, the index gained 13.87 points or 0.92 percent to finish at the daily high of 1,516.61 after moving as low as 1,488.89. Among the actives, 99 Speed Mart Retail strengthened 0.97 percent, while Axiata retreated 1.43 percent, CIMB Group accelerated 2.26 percent, Gamuda dropped 0.42 percent, Hong Leong Financial tanked 2.41 percent, IOI Corporation slumped 1.08 percent, Kuala Lumpur Kepong and PPB Group both added 0.40 percent, Maxis surrendered 2.17 percent, Maybank collected 0.10 percent, MISC rallied 1.46 percent, MRDIY declined 1.23 percent, Nestle Malaysia surged 5.35 percent, Petronas Chemicals spiked 3.95 percent, Petronas Dagangan dipped 0.19 percent, Petronas Gas climbed 0.80 percent, Press Metal rose 0.20 percent, Public Bank soared 4.99 percent, Sime Darby plunged 2.42 percent, SD Guthrie jumped 1.78 percent, Sunway gained 0.22 percent, Tenaga Nasional advanced 0.56 percent, YTL Corporation stumbled 2.36 percent and YTL Power, Celcomdigi, Telekom Malaysia, QL Resources, RHB Bank, IHH Healthcare and Hong Leong Bank were unchanged.

The lead from Wall Street is upbeat as the major averages shook off early weakness, using a late-day surge to finish solidly in the green.

For the day, the Dow jumped 374.96 points or 0.89 percent to finish at 42,581.78, while the NASDAQ rallied 183.56 points or 0.94 percent to close at 19,630.97 and the S&P 500 climbed 57.33 points or 0.96 percent to end at 6,025.17.

The late rally came as Federal Reserve Vice Chair Michelle Bowman indicated support for a rate cut as early as July, citing concerns about the job market and potential easing of inflationary pressures related to tariffs. Additionally, reports of potential tariff reductions between the U.S. and China helped ease market anxieties.

The major averages had opened lower and hugged the unchanged line for much of the day as investors waited for Iran's response to the weekend U.S. air strikes on its nuclear sites.

In economic news, the National Association of Realtors said that existing home sales rose 0.8 percent on month in May and saw a 6.2 percent increase in unsold inventory. On a yearly basis, existing home sales fell 0.7 percent.

Crude oil prices were on a roller coaster ride on Monday, moving sharply higher earlier in the day in response to the U.S. bombing attack in Iran. But as it looks like Iran won't try to block the straight of Hormuz, prices plummeted later in the day. West Texas Intermediate crude for August delivery plunged $5.00 of 6.77 percent to $68.84 per barrel. Closer to home, Malaysia will release May data for consumer prices later today; in April, inflation was up 0.1 percent on month and 1.4 percent on year.