Malaysia Stock Market May Extend Monday's Gains

(RTTNews) - The Malaysia stock market on Monday snapped the four-day slide in which it had dropped more than 25 points or 1.6 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,495-point plateau and it may add to its winnings on Tuesday.

The global forecast for the Asian markets is upbeat as hopes for a solid economic recovery outweighed a rising number of coronavirus cases worldwide. The European and U.S. markets were up and the Asian bourses are tipped to follow suit.

The KLCI finished modestly higher on Monday as gains from the plantations were capped by weakness from the financial sector.

For the day, the index added 6.29 points or 0.42 percent to finish at 1,494.43 after trading between 1,476.28 and 1,494.97. Volume was 6.015 billion shares worth 3.053 billion ringgit. There were 662 decliners and 371 gainers.

Among the actives, Top Glove surged 5.37 percent, while Hartalega Holdings soared 4.69 percent, IHH Healthcare spiked 4.48 percent, Axiata Group accelerated 3.47 percent, Petronas Chemicals plummeted 2.36 percent, Sime Darby Plantations jumped 1.64 percent, AMMB Holdings plunged 1.60 percent, climbed 1.43 percent, CIMB Group tumbled 1.40 percent, IOI Corporation advanced 1.39 percent, Genting Malaysia skidded 1.19 percent, Maybank dropped 1.18 percent, Dialog Group sank 0.83 percent, Kuala Lumpur Kepong added 0.82 percent, Public Bank shed 0.72 percent, Tenaga Nasional gained 0.70 percent, Malaysia Airports Holdings lost 0.54 percent, Genting and Sime Darby both rose 0.48 percent, Maxis fell 0.37 percent, Press Metal eased 0.22 percent and Petronas Gas and MISC were unchanged.

The lead from Wall Street is broadly positive as stocks shook off a soft open Monday to move solidly into the green, offsetting losses from the previous session.

The Dow surged 580 points or 2.32 percent to finish at 25,595.80, while the NASDAQ spiked 116.93 points or 1.20 percent to end at 9,874.15 and the S&P 500 soared 44.19 points or 1.47 percent to close at 3,053.24.

The soft open on Wall Street was in response to rising numbers of new cases of coronavirus in the U.S. and several other parts across the globe. Data from Johns Hopkins University showed the number of coronavirus cases worldwide has surpassed 10 million, while the global death toll from the pandemic rose to more than 500,000.

But the markets rebounded when the National Association of Realtors said that pending home sales in the United States surged a record 44.3 percent in May. Also, the Dallas Fed's manufacturing index fell less than expected, further stoking optimism for economic recovery.

Crude oil prices climbed higher Monday despite concerns about the outlook for energy demand amid the spike in the virus. West Texas Intermediate crude futures for August ended up $1.21 or 3.1 percent at $39.70 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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