Additional Support Called For Malaysia Bourse
(RTTNews) - The Malaysia stock market on Tuesday snapped the three-day slide in which it had stumbled more than 30 points or 2.1 percent. The Kuala Lumpur Composite Index now rests just above the 1,505-point plateau and it may add to its winnings on Wednesday.
The global forecast for the Asian markets is positive, with bargain hunting expected after days of heavy selling while optimism for additional stimulus added to the positive sentiment. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The KLCI finished modestly higher on Tuesday following gains from the financial shares and rubber glove makers, while the plantations were mixed.
For the day, the index added 6.35 points or 0.42 percent to finish at 1,505.48 after trading between 1,494.93 and 1,511.90. Volume was 6.544 billion shares worth 3.918 billion ringgit. There were 599 decliners and 431 gainers.
Among the actives, Hong Leong Financial surged 3.58 percent, while Genting Malaysia soared 1.90 percent, Sime Darby spiked 1.74 percent, Press Metal plunged 1.36 percent, Genting accelerated 1.20 percent, Public Bank rallied 1.15 percent, Tenaga Nasional gathered 1.10 percent, MISC and Hong Leong Bank both perked 0.67 percent, AMMB Holdings advanced 0.66 percent, Petronas Gas dropped 0.60 percent, IHH Healthcare added 0.57 percent, Hartalega Holdings gained 0.43 percent, Malaysia Airports Holdings sank 0.41 percent, Top Glove rose 0.37 percent, Petronas Chemicals increased 0.36 percent, Axiata strengthened 0.32 percent, Kuala Lumpur Kepong was up 0.27 percent, Dialog Group lost 0.26 percent, Digi.com fell 0.25 percent, IOI Corporation dipped 0.22 percent, Maybank collected 0.14 percent and Sime Darby Plantations and CIMB Group were unchanged.
The lead from Wall Street is firm as stocks shook off a sluggish start on Tuesday to finish solidly in the green, halting a three-day slide.
The Dow climbed 140.48 points or 0.52 percent to finish at 27,288.18, while the NASDAQ spiked 184.84 points or 1.71 percent to end at 10,963.64 and the S&P 500 jumped 34.51 points or 1.05 percent to close at 3,315.57.
The strength on Wall Street came after Federal Reserve Chair Jerome Powell said the central bank remains "committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible."
Although worries about rising coronavirus cases persisted and reports of fresh lockdown restrictions in some countries raised concerns about growth, bargain hunting and short-covering after Monday's sharp setback pushed stock prices higher.
In economic news, the National Association of Realtors reported that existing home sales in the U.S. climbed to their highest level in nearly fourteen years in August.
Crude oil futures saw a technical rebound on Tuesday, although it was limited by worries about the outlook for energy demand amidst new coronavirus cases in Europe. West Texas Intermediate Crude oil futures for November ended higher by $0.26 or 0.7 percent at $39.80 a barrel.
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