FX.co ★ Continued Consolidation Called For Malaysia Stock Market

The Malaysian stock market has seen a loss in two successive sessions, diminishing nearly 10 points or 0.6 percent in the process. The Kuala Lumpur Composite Index (KLCI) lingers slightly above the 1,550-point plateau, and the downward trend could intensify on Monday.

The global prediction for Asian markets is negative, bringing the growing pessimism over interest rate prospects into focus. The European markets showed mixed results, with U.S. market indices down, and it appears that Asian markets might follow suit.

The KLCI registered a minor decline on Friday brought on partially by the telecom industry losses, but cushioned by support from the financial sector, and a mixed performance from plantation stocks. Throughout the day, the index dipped 2.47 points or 0.16 percent to finish at 1,551.04, fluctuating between 1,548.27 and 1,556.64.

Key players such as AMMB Holdings exhibited a gain of 0.24 percent, whilst Axiata plummeted 1.91 percent. Other significant variations included Genting falling 1.28 percent, Kuala Lumpur Kepong dropping 0.96 percent, and RHB Capital gaining 0.52 percent. Sime Darby, Petronas Dagangan, and Hong Leong Financial remained static.

Wall Street had a tough day as major averages opened lower and continued to diminish throughout the day, concluding with a near session low point. Dow fell by 1.24 percent, NASDAQ dropped 1.62 percent, and S&P 500 reduced by 1.46 percent. As a weekly result, Dow slipped 2.5 percent, S&P 500 lost 1.6 percent, and NASDAQ was down 0.5 percent.

Inflation concerns persisted as the Labor Department reported a higher than anticipated increase in U.S. import prices in March, thereby quelling expectations for a potential rate cut by the Federal Reserve in June. Disappointing earnings and dire predictions from major entities like Citigroup, JPMorgan Chase, Wells Fargo, Intel, Amazon, and Goldman Sachs compounded investor unease.

Meanwhile, oil prices rose on Friday, with concerns over uncertain supply in the face of escalating tensions in the Middle East between Iran and Israel. West Texas Intermediate Crude oil futures for May ended higher by $0.64 at $85.66 a barrel.