Renewed Support Predicted For Malaysia Stock Market
(RTTNews) - The Malaysia stock market on Tuesday ended the two-day winning streak in which it had jumped almost 25 points or 1.6 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,600-point plateau although it's expected to rebound on Wednesday.
The global forecast for the Asian markets is mixed to higher, with rising coronavirus concerns offset by optimism for further stimulus. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.
The KLCI finished modestly lower on Tuesday following losses from the telecoms and financials, while the plantations offered mild support.
For the day, the index fell 7.68 points or 0.48 percent to finish at 1,598.75 after trading between 1,577.33 and 1,617.36. Volume was 8.761 billion shares worth 8.219 billion ringgit. There were 770 decliners and 304 gainers.
Among the actives, Hartalega Holdings plummeted 5.03 percent, while Top Glove plunged 3.50 percent, Malaysia Airports Holdings tanked 2.86 percent, CIMB Group tumbled 2.37 percent, AMMB Group skidded 2.15 percent, Petronas Chemicals spiked 1.45 percent, Genting Malaysia jumped 1.19 percent, Tenaga Nasional climbed 1.06 percent, Public Bank advanced 0.97 percent, Genting retreated 0.97 percent, Sime Darby and IHH Healthcare both declined 0.93 percent, RHB Capital surrendered 0.79 percent, PPB Group added 0.78 percent, Digi.com sank 0.69 percent, Sime Darby Plantations gained 0.60 percent, Axiata rallied 0.59 percent, Maybank lost 0.38 percent, MISC rose 0.25 percent, Press Metal increased 0.21 percent, Kuala Lumpur Kepong was up 0.09 percent and Petronas Gas, Maxis, Dialog Group and IOI Corporation were unchanged.
The lead from Wall Street is broadly positive as stocks rebounded on Tuesday from the sharp pullback in the previous session.
The Dow surged 556.79 points or 2.13 percent to finish at 26,642.59, while the NASDAQ jumped 97.73 points or 0.94 percent to end at 10,488.58 and the S&P 500 rose 42.30 points or 1.34 percent to close at 3,197.52.
The spike by the Dow was partly attributed to traders transitioning out of big-name tech stocks and into more cyclical stocks like Caterpillar (CAT), which led the blue chip index higher with a 4.8 percent jump.
Strong gains by energy giants Chevron (CVX) and Exxon Mobil (XOM) also contributed to the advance by the Dow, reflecting strength in the broader energy sector.
Investors shrugged off a surge in new coronavirus cases, even though several U.S. states are likely to resort to another lockdown. Already, California Governor Gavin Newscom has ordered the reintroduction of coronavirus-related restrictions, aiming to contain the spread of the pandemic.
Crude oil futures were higher on Tuesday, with traders weighing global crude supply and demand positions ahead of today's OPEC meeting. West Texas Intermediate Crude oil futures for August ended up $0.19 or 0.5 percent at $40.29 a barrel.
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