Malaysia Bourse Tipped To End Losing Streak

(RTTNews) - Ahead of the long weekend for the Harvest Festival, the Malaysia stock market had finished lower in three straight sessions, slumping more than 25 points or 1.6 percent in that span. The Kuala Lumpur Composite Index now sits just beneath the 1,685-point plateau although it may stop the bleeding on Wednesday.

The global forecast for the Asian markets is mildly positive on hopes for an end to hostilities in the Middle East. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The KLCI finished slightly lower on Friday following losses from the plantations and mixed performances from the financials, telecoms and industrials.

For the day, the index eased 1.86 points or 0.11 percent to finish at 1,683.07 after trading between 1,680.59 and 1,694.65. Among the actives, AMMB Holdings tanked 1.82 percent, while Axiata climbed 1.01 percent, Celcomdigi shed 0.65 percent, CIMB Group dipped 0.13 percent, Gamuda tumbled 1.64 percent, IHH Healthcare rose 0.22 percent, IOI Corporation sank 0.75 percent, Kuala Lumpur Kepong, Maxis surged 7.54 percent, Maybank jumped 1.33 percent, MISC and YTL Corporation both increased 0.49 percent, MRDIY improved 0.64 percent, Nestle Malaysia plunged 4.21 percent, Petronas Chemicals plummeted 5.44 percent, Petronas Dagangan soared 2.31 percent, Petronas Gas fell 0.35 percent, PPB Group advanced 0.71 percent, Public Bank retreated 1.26 percent, RHB Bank collected 0.12 percent, Sime Darby lost 0.48 percent, SD Guthrie stumbled 1.53 percent, Sunway spiked 1.89 percent, Sunway Healthcare rallied 1.14 percent, Telekom Malaysia dropped 0.80 percent, Tenaga Nasional added 0.28 percent, YTL Power gained 0.24 percent and 99 Speed Mart Retail and Press Metal were unchanged.

The lead from Wall Street is cautiously optimistic as the major averages were able to shake off early weakness and find modest gains on Tuesday, with all three hitting record closing highs for the third day in a row.

The Dow added 228.91 points or 0.45 percent to finish at 51,307.79, while the NASDAQ rose 7.09 points or 003 percent to close at 27,093.90 and the S&P 500 added 9.86 points or 0.13 percent to end at 7,609.82.

Stocks had benefitted from optimism for an end to the U.S.-Iran conflict in the past few sessions, but differing accounts from U.S. President Donald Trump and the Israelian Prime Minister Benjamin Netanyahu dampened hopes. A rebound by the price of crude oil also limited the upside.

Crude oil prices jumped on Tuesday as the U.S.-Iran Memorandum of Understanding has been delayed. Also, global energy watchdogs warn of accelerating crude oil inventory depletion. West Texas Intermediate crude for July was up $1.57 or 1.70 percent at $93.73 per barrel.

While uncertainty about the situation in the Middle East has kept some traders on the sidelines, optimism about the AI trade continues to generate positive sentiment on Wall Street.