Rebound Anticipated For Malaysia Stock Market

(RTTNews) - The Malaysia stock market on Thursday ended the three-day winning streak in which it had collected more than a dozen points or 0.8 percent. The Kuala Lumpur Composite Index now sits just above the 1,580-point plateau although it may bounce higher again on Friday.

The global forecast for the Asian markets is upbeat on an improved outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The KLCI finished modestly lower on Thursday as the financials, industrials and plantations were mostly in the red, although the telecoms offered support.

For the day, the index sank 7.90 points or 0.50 percent to finish at 1,582.85 after trading between 1,580.16 and 1,583.82. Among the actives, AMMB Holdings rose 0.36 percent, while Axiata gained 0.38 percent, Celcomdigi slumped 1.08 percent, CIMB Group increased 0.42 percent, Gamuda sank 0.89 percent, IHH Healthcare and Petronas Chemicals both advanced 0.70 percent, Kuala Lumpur Kepong shed 0.50 percent, Maxis was up 0.28 percent, Maybank tumbled 2.01 percent, MISC added 0.65 percent, MRDIY fell 0.27 percent, Petronas Dagangan stumbled 2.82 percent, Petronas Gas declined 1.28 percent, PPB Group dropped 0.98 percent, Press Metal skidded 1.07 percent, Public Bank retreated 1.86 percent, QL Resources jumped 1.17 percent, RHB Bank dipped 0.15 percent, Sime Darby lost 0.46 percent, Telekom Malaysia improved 0.43 percent, Tenaga Nasional gathered 0.30 percent, YTL Power perked 0.24 percent and SD Guthrie, Sunway, Nestle Malaysia, 99 Speed Mart Retail, Hong Leong Bank, YTL Corporation and IOI Corporation were unchanged.

The lead from Wall Street is positive as the major averages opened higher on Thursday and remained in the green throughout the trading day.

The Dow surged 617.08 points or 1.36 percent to finish at 46,108.00, while the NASDAQ rallied 157.01 points or 0.72 percent to end at 22,043.07 and the S&P 500 gained 55.43 points or 0.85 percent to close at 6,587.47.

The strength on Wall Street came amid a positive reaction to separate Labor Department reports on consumer price inflation and weekly jobless claims, further boosting the chances of a rate cut.

A closely watched Labor Department report showed U.S. consumer prices rose by slightly more than expected in August. Also, first-time claims for U.S. unemployment benefits unexpectedly increased last week.

Following the reports, CME Group's FedWatch Tool is currently indicating 94.8 percent chance the Federal Reserve will lower rates by a quarter-point next week and a slim 5.2 percent chance of a half- point rate cut.

Crude oil prices fell sharply on Thursday, triggered by the International Energy Agency's monthly report that boosted the supply estimate for 2025 and 2026, indicating a glut. West Texas Intermediate crude for October delivery sank $1.22 or 1.92 percent at $62.45 per barrel.