Win Streak May Continue For Malaysia Stock Market

(RTTNews) - The Malaysia stock market has finished higher in back-to-back sessions, collecting more than 25 points or 1.6 percent along the way. The Kuala Lumpur Composite Index now sits just beneath the 1,700-point plateau and it's expected to see additional support on Tuesday. The global forecast for the Asian markets is upbeat, with oil prices being the main catalyst to the upside. The European and U.S. markets were slightly higher and the Asian bourses are expected to open in similar fashion. The KLCI finished modestly higher on Monday as gains from the financial shares and plantations were limited by weakness from the telecom sector. For the day, the index rose 8.90 points or 0.53 percent to finish at 1,695.44 after trading between 1,686.57 and 1,697.78. Among the actives, 99 Speed Mart Retail sank 0.76 percent, while AMMB Holdings eased 0.15 percent, Axiata lost 0.39 percent, Celcomdigi added 0.30 percent, CIMB Group and Maybank both expanded 0.74 percent, Gamuda was up 0.21 percent, IHH Healthcare rose 0.23 percent, IOI Corporation jumped 1.74 percent, Kuala Lumpur Kepong vaulted 1.30 percent, Maxis rallied 1.54 percent, MISC increased 0.38 percent, MRDIY surged 3.16 percent, Nestle Malaysia dropped 0.83 percent, Petronas Chemicals tumbled 1.83 percent, Petronas Dagangan spiked 2.48 percent, Petronas Gas advanced 0.66 percent, PPB Group perked 0.18 percent, Press Metal shed 0.42 percent, Public Bank gathered 0.22 percent, QL Resources accelerated 2.13 percent, RHB Bank collected 0.64 percent, Sime Darby climbed 0.96 percent, SD Guthrie soared 2.78 percent, Telekom Malaysia fell 0.25 percent, Tenaga Nasional gained 0.29 percent, YTL Corporation improved 0.49 percent, YTL Power strengthened 1.20 percent and Sunway was unchanged.

The lead from Wall Street suggests mild upside as the major averages opened lower on Monday but managed to break into the green shortly thereafter.

The Dow added 86.13 points or 0.17 percent to finish at 49,590.20, while the NASDAQ gained 62.56 points or 0.26 percent to close at 23,733.90 and the S&P 500 rose 10.99 points or 0.16 percent to end at 6,977.27.

The initial pullback on Wall Street reflected concerns about the Federal Reserve's independence after Fed Chair Jerome Powell revealed that the U.S. central bank has been served subpoenas by the Department of Justice that threaten criminal charges.

Powell termed this action "unprecedented" and ascribed it to President Donald Trump's ongoing threats and pressure on the Fed to lower interest rates.

Selling pressure waned over the course of the session, however, as traders remain optimistic about the outlook for interest rates. While the Fed is widely expected to leave interest rates unchanged at its next meeting later this month, the central bank is still likely to cut rates by at least another quarter point in the coming months.

Crude oil prices climbed on Monday as the increasing possibility of U.S. intervention to end the Iran turmoil sets off production disruption concerns. West Texas Intermediate crude for February delivery was up $0.33 or 0.51 percent at $59.42 per barrel.