FX.co ★ Malaysia Stock Market May Test Resistance At 1,600 Points

On Thursday, the Malaysian stock market saw an uptick, bouncing back just one day after breaking a two-day winning streak where it secured a near 15 points or 1 percent climb. The KLCI (Kuala Lumpur Composite Index) now sits just a bit over the 1,580-point barrier, and Friday could see further gains.

Global forecasts for Asian markets remain positive, buoyed by an improved outlook on interest rates. While the European markets demonstrated mixed trends, US markets were on the rise with Asian markets expected to tread a similar trajectory.

On Thursday, the KLCI saw a marginal growth due to gains in the plantation sector, alongside mixed outcomes from financial and telecommunications shares. The index rose by 4.33 points or 0.27 percent, concluding trading at the 1,580.30 mark after fluctuating between 1,574.27 and 1,582.68 marginally.

Active companies witnessed varying performances; Axiata leaped at 1.41 percent and CIMB Group grew by 0.45 percent; while Celcomdigi fell by 0.96 percent. Genting decreased by 0.66 percent, Genting Malaysia by 1.14 percent, and Maxis by 0.27 percent. Other companies such as IOI Corporation, Kuala Lumpur Kepong, Maybank, MISC and Tenaga Nasional, MRDIY, Petronas Chemicals, PPB Group, QL Resources, and YTL Corporation all enjoyed growth, while Press Metal, Public Bank, RHB Capital and Telekom Malaysia faced declines. IHH Healthcare and Sime Darby remained unchanged.

The Wall Street trends remained strong as main indexes opened high on Thursday, gaining more strength as the day progressed, closing near the peak of the session.

The Dow soared by 322.37 points or 0.85 percent ending at 38,225.66, while the NASDAQ surged 235.48 points or 1.51 percent to close at 15,840.96. The S&P 500 too rose by 45.81 points or 0.91 percent to end at 5,064.20.

The surge on Wall Street followed the Federal Reserve's financial policy announcement on Wednesday, which brought a sigh of relief among traders who had concerns about potential interest rate hikes. But, Jerome Powell, the Fed Chair, effectively dissipated such worries in the post-meeting discussion.

Earlier in the day, market fluctuations were influenced by the latest US economic data, including a report from the Labor Department indicating a spike in labor costs for 2024’s first quarter. Meanwhile, initial jobless claims remained steady, and a separate report showed a marginal narrowing in the US's trade deficit in March.

Lastly, Oil futures slipped after failing to maintain early gains on Thursday, amid subdued concerns over supply disruptions combined with concerns about economic growth and energy demand outlook. The West Texas Intermediate Crude oil futures for June ended marginally lower by $0.05, concluding at $78.95 a barrel.