Renewed Support Likely For Malaysia Stock Market

(RTTNews) - The Malaysia stock market has alternated between positive and negative finishes through the last four trading days since the end of the three-day losing streak in which it had fallen more than 15 points or 1 percent. The Kuala Lumpur Composite Index now sits just above the 1,525-point plateau although it's likely to bounce higher again on Tuesday.

The global forecast for the Asian markets is positive on bargain hunting and optimism for an interest rate cut. The European and U.S. markets were sharply higher and the Asian bourses figure to follow that lead.

The KLCI finished modestly lower on Monday following losses from the financial shares and mixed performances from the telecoms, industrials and plantations.

For the day, the index slipped 6.37 points or 0.42 percent to finish at 1,526.98 after trading between 1,522.96 and 1,530.28.

Among the actives, 99 Speed Mart Retail surged 2.20 percent, while AMMB Holdings eased 0.19 percent, Axiata stumbled 1.86 percent, Celcomdigi skidded 0.79 percent, CIMB Group lost 0.59 percent, IHH Healthcare and Telekom Malaysia both gained 0.30 percent, IOI Corporation slid 0.27 percent, Kuala Lumpur Kepong sank 0.72 percent, Maxis fell 0.58 percent, Maybank shed 0.63 percent, MISC climbed 0.66 percent, MRDIY advanced 0.62 percent, Petronas Chemicals was down 0.26 percent, Petronas Dagangan slumped 0.93 percent, Petronas Gas and Nestle Malaysia both rallied 1.34 percent, PPB Group improved 0.32 percent, Press Metal dropped 0.75 percent, Public Bank declined 1.17 percent, QL Resources spiked 1.43 percent, Sime Darby tumbled 1.84 percent, SD Guthrie rose 0.21 percent, Sunway retreated 1.24 percent, Tenaga Nasional surrendered 1.05 percent, YTL Corporation jumped 1.61 percent, YTL Power added 0.49 percent and Gamuda and RHB Bank both were unchanged.

The lead from Wall Street is strong as the major averages opened solidly higher on Monday and closed in similar fashion, cutting into Friday's steep losses.

The Dow jumped 585.06 points or 1.34 percent to finish at 44,173.64, while the NASDAQ rallied 403.45 points or 1.95 percent to end at 21,053.58 and the S&P 500 gained 91.93 points or 1.47 percent to close at 6,329.94.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following the recent sell-off, which saw the NASDAQ and the S&P 500 pull back well off their record highs.

The steep drop last Friday came amid concerns about the economic impact of President Donald Trump's new tariffs, weaker than expected jobs data and a slump by shares of Amazon (AMZN).

Optimism the weak jobs data will lead the Federal Reserve to lower interest rates next month also contributed to the buying interest. According to CME Group's FedWatch Tool, the chances of a quarter point rate cut in September have jumped to 91.9 percent from 63.1 percent a week ago.

Crude oil continued to decline on Monday thanks to oversupply concerns and fears of a tariff-induced slowdown by the global economy. West Texas Intermediate crude for September delivery was down $1.06 or 1.57 percent at $66.27 per barrel.