FX.co ★ Malaysia Bourse Likely To Crack Resistance At 1,600 Points

The Malaysian stock market has seen gains for two consecutive sessions, accumulating almost 15 points or 1 percent during this period. The Kuala Lumpur Composite Index (KLCI) now hovers just below the 1,600-point mark and is anticipated to open on a positive note again on Tuesday.

The global outlook for Asian markets suggests minimal movement, as investors await key U.S. employment data slated for later this week. Following modest gains in European and U.S. markets, Asian markets are likely to follow a similar trend. On Monday, the KLCI posted a modest increase, buoyed by gains in financial and telecom shares, although plantation stocks presented mixed results. Specifically, the index climbed 8.11 points or 0.51 percent, finishing at 1,598.20, fluctuating between 1,587.03 and 1,598.36 throughout the session. Among active stocks, Axiata surged 1.92 percent, Celcomdigi increased by 0.27 percent, CIMB Group rose 0.44 percent, while Genting declined 0.64 percent. IOI Corporation advanced 0.81 percent, Kuala Lumpur Kepong slid 0.78 percent, Maxis strengthened 1.42 percent, and Maybank edged up 0.10 percent. Contrarily, MRDIY plummeted 2.58 percent, Petronas Chemicals fell 0.63 percent, but PPB Group climbed 0.84 percent and Public Bank gained 0.25 percent. QL Resources dropped 0.61 percent, RHB Capital dipped 0.18 percent, Sime Darby decreased 0.38 percent, SD Guthrie rose 0.47 percent, Sunway leapt 2.77 percent, Telekom Malaysia increased by 0.30 percent, Tenaga Nasional grew 1.60 percent, YTL Corporation surged 4.93 percent, and YTL Power climbed 1.66 percent. Other stocks, including Genting Malaysia, IHH Healthcare, MISC, and Press Metal, remained unchanged.

Wall Street's lead is cautiously optimistic, as markets opened slightly higher on Monday and remained relatively flat before transitioning firmly into positive territory by closing time. The Dow advanced 50.66 points or 0.13 percent to 39,169.52, the NASDAQ surged 146.70 points or 0.83 percent to 17,879.30, and the S&P 500 increased by 14.61 points or 0.27 percent to 5,475.09.

Wall Street's tepid performance came as traders anticipate the Labor Department's closely monitored monthly jobs report, expected to reveal a deceleration in June's job growth, potentially affecting interest rate expectations. Additionally, traders might be remaining cautious ahead of Federal Reserve Chair Jerome Powell's speech on Tuesday and the Independence Day holiday on Thursday.

In U.S. economic developments, the Institute for Supply Management reported an unexpected contraction in manufacturing activity for June. The Commerce Department also noted a slight decline in construction spending for May.

Oil prices experienced a significant rise on Monday due to expectations of increased demand, supply concerns, and production cuts by OPEC. West Texas Intermediate Crude oil futures closed higher by $1.84, or approximately 2.2 percent, at $83.38 per barrel.