(RTTNews) - The Malaysia stock market on Wednesday ended the four-day losing streak in which it had dropped more than 30 points or 2 percent. The Kuala Lumpur Composite Index now sits just beneath the 1,700-point plateau and it may add to its winnings on Thursday.
The global forecast for the Asian markets is upbeat on news of the two-week ceasefire between the United States and Iran - although the Asian markets have already reacted to this news, so the upside may be more measured than the spikes in the European and U.S. markets.
The KLCI finished sharply higher on Wednesday following gains from the financial shares and industrials, while the telecoms were mixed and the plantations were soft. For the day, the index climbed 19.45 points or 1.16 percent to finish at the daily high of 1,696.31 after trading as low as 1,683.58. Among the actives, 99 Speed Mart Retail spiked 3.92 percent, while Axiata soared 4.07 percent, Celcomdigi shed 0.65 percent, CIMB Group strengthened 2.86 percent, Gamuda jumped 3.15 percent, IHH Healthcare gained 1.38 percent, IOI Corporation slumped 1.41 percent, Kuala Lumpur Kepong dropped 0.99 percent, Maxis fell 0.28 percent, Maybank improved 1.43 percent, MISC was up 0.36 percent, MRDIY expanded 2.67 percent, Nestle Malaysia vaulted 2.75 percent, Petronas Chemicals plummeted 4.93 percent, Petronas Dagangan surged 4.87 percent, Petronas Gas perked 0.22 percent, PPB Group rose 0.66 percent, Press Metal advanced 1.66 percent, Public Bank climbed 2.17 percent, RHB Bank collected 1.60 percent, SD Guthrie tumbled 2.91 percent, Sunway added 1.40 percent, Sunway Healthcare accelerated 3.70 percent, Tenaga Nasional gathered 0.43 percent, YTL Corporation rallied 3.17 percent, YTL Power increased 1.41 percent and Sime Darby and Telekom Malaysia were unchanged.
The lead from Wall Street is broadly positive as the major averages opened sharply higher and stayed that way throughout the trading day, ending at session highs.
The Dow surged 1,325.46 points or 2.85 percent to finish at 47,909.92, while the NASDAQ rallied 617.14 points or 2.80 percent to end at 22,634.99 and the S&P 500 jumped 165.96 points or 2.51 percent to close at 6,782.81.
The initial surge on Wall Street came in reaction to news that the U.S., Israel and Iran have agreed to a two-week ceasefire.
President Donald Trump said he has agreed to suspend the bombing and attack of Iran for two weeks subject to Tehran agreeing to the complete and immediate opening of the Strait of Hormuz.
A subsequent statement from Iran's Foreign Minister Abbas Araghchi indicated the Strait of Hormuz will be reopened for a period of two weeks if the attacks against Iran are halted.
Crude oil prices went into a tailspin Wednesday as supply-disruption risks dissipated following a two-week ceasefire agreement between the U.S. and Iran. West Texas Intermediate crude for May delivery was down $18.15 or 16.07 percent at $94.80 per barrel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
