Malaysia Stock Market May Test Support At 1,500 Points

(RTTNews) - The Malaysia stock market on Thursday snapped the three-day winning streak in which it had collected more than 40 points or 2.6 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,515-point plateau and it figures to open under pressure again on Friday.

The global forecast for the Asian markets is soft on concerns over the economic recovery following the COVID-19 pandemic. The European and U.S. markets were down and the Asian markets are tipped to open in similar fashion.

The KLCI finished sharply lower on Thursday following losses form the rubber glove makers, financials and plantations.

For the day, the index dropped 18.21 points or 1.19 percent to finish at 1,513.07 after trading between 1,508.01 and 1,541.14. Volume was 7.494 billion shares worth 6.184 billion ringgit. There were 768 decliners and 376 gainers.

Among the actives, Top Glove plummeted 7.59 percent, while Genting plunged 2.65 percent, PPG Group surged 2.14 percent, MISC tanked 1.94 percent, Maybank tumbled 1.73 percent, Axiata skidded 1.61 percent, Petronas Chemicals retreated 1.58 percent, IOI Corporation declined 1.57 percent, Maxis surrendered 1.56 percent, CIMB Group sank 1.55 percent, Sime Darby climbed 1.28 percent, Public Bank dropped 1.20 percent, AMMB Holdings advanced 1.00 percent, Malaysia Airports Holdings shed 0.79 percent, IHH Healthcare increased 0.75 percent, RHB Capital collected 0.65 percent, lost 0.48 percent, Genting Malaysia fell 0.46 percent, Tenaga Nasional added 0.36 percent, Kuala Lumpur Kepong slid 0.35 percent, Sime Darby Plantations gained 0.20 percent and Dialog Group, Hartalega Holdings and Press Metal were unchanged.

The lead from Wall Street is negative as stocks opened lower on Thursday and remained in the red all day, extending losses from the previous session.

The Dow lost 130.40 points or 0.47 percent to finish at 27.901.98, while the NASDAQ tumbled 140.19 points or 1.27 percent to end at 10.910.28 and the S&P 500 fell 28.48 points or 0.84 percent to close at 3,357.01.

The weakness on Wall Street continued after the Federal Reserve revealed plans to leave interest rates at near-zero levels for years to come - suggesting the economic recovery will not be as swift as many were hoping.

Complicating matters, U.S. lawmakers remain at an impasse over a new coronavirus stimulus bill for weeks, and the upcoming elections could make reaching a compromise more difficult.

Negative sentiment was generated in reaction to a report from the Labor Department showing first-time claims for U.S. unemployment benefits fell less than expected last week. Also, the Commerce Department said new residential construction pulled back more than expected in August.

Crude oil prices moved higher on Thursday on reports that OPEC and its allies plan to crack down on countries that failed to comply with output cuts. West Texas Intermediate Crude oil futures for October ended up $0.81 or 2 percent at $40.97 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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