FX.co ★ Rally May Stall For Malaysia Stock Market

The Malaysian stock market has experienced gains over four consecutive sessions, accumulating an increase of more than 35 points or 2.1%. The Kuala Lumpur Composite Index (KLCI) is now approaching the 1,630 mark, although analysts expect some profit-taking activities to occur on Monday.

The outlook for Asian markets this holiday-shortened week is mixed to lower, with technology stocks likely to weigh heavily on performance. European markets closed higher, while the U.S. markets ended lower, suggesting that Asian bourses might follow the latter trend.

On Friday, the KLCI posted modest gains, primarily due to positive movements in the plantation sector and varied outcomes from telecommunications, financials, and industrials. The index rose by 14.44 points or 0.89%, concluding the day at 1,628.14, after fluctuating between 1,616.69 and 1,632.63.

Noteworthy performers included 99 Speed Mart Retail, which climbed 1.23%, whereas Axiata decreased by 0.42%. Celcomdigi and Press Metal each jumped by 1.67%, CIMB Group strengthened by 1.37%, and Gamuda rallied by 1.52%. Meanwhile, IHH Healthcare improved by 0.42%, Kuala Lumpur Kepong advanced by 0.56%, and Maxis declined by 0.55%. Maybank saw a slight dip of 0.20%, MISC perked up by 0.13%, MRDIY fell by 0.54%, and Nestle Malaysia dropped 0.53%. Petronas Chemicals surged by 2.45%, but Petronas Dagangan fell 1.23%. PPB Group slid by 0.32%, Public Bank saw a 0.66% increase, and QL Resources was down 0.21%. RHB Bank added 0.47%, Sime Darby dropped 0.85%, SD Guthrie spiked by 1.86%, Sunway rose by 0.42%, Telekom Malaysia gained 0.45%, and Tenaga Nasional surged by 3.95%. YTL Corporation lost 0.38%, while YTL Power, IOI Corporation, and Petronas Gas remained unchanged.

Wall Street delivered a negative lead, with major averages opening in the red and staying that way to close near session lows. The Dow Jones Industrial Average dropped 333.59 points, or 0.77%, to end at 42,992.21. The NASDAQ Composite fell 298.37 points, or 1.49%, to 19,722.03, and the S&P 500 decreased 66.75 points, or 1.11%, closing at 5,970.84.

For the week, the Dow advanced by 1.4%, while both the NASDAQ and S&P 500 posted gains of 1.5%. This data may reflect skewed figures due to reduced trading volumes during the holiday season between Christmas and New Year's, with many investors away.

Economically, U.S. retail inventories, excluding autos, rose by 0.6% in November, a preliminary estimate following an upwardly revised increase of 0.3% in the previous month.

Oil prices rose on Friday, driven by a significant drop in U.S. crude inventories last week and continued geopolitical tensions between Russia and Ukraine. West Texas Intermediate crude oil futures for February closed at $70.60 per barrel, marking an increase of about 1.4%.