FX.co ★ Rebound Anticipated For Malaysia Stock Market

Ahead of Monday's Islamic New Year holiday, the Malaysian stock market paused its two-day winning streak during which it had gained over 15 points, equivalent to a 1% increase. The Kuala Lumpur Composite Index (KLCI) now rests slightly above the 1,610-point mark and is anticipated to potentially rebound on Tuesday.

Global forecasts for Asian markets present a flat to slightly positive outlook amidst uncertainty regarding interest rate trajectories. While European markets experienced declines, U.S. indices showed mixed and flat performances, suggesting that Asian markets may follow this latter trend.

On Friday, the KLCI saw a modest decline, with financial and telecom sectors weighing down the index, although losses were somewhat offset by gains in plantation stocks.

By the end of the trading day, the index had dropped by 5.73 points or 0.35%, closing at 1,611.02, after fluctuating between 1,608.41 and 1,616.26. Notable movers included:

- Axiata, which fell by 1.56%

- Celcomdigi, which dropped by 1.93%

- CIMB Group, down by 0.71%

- Genting, which decreased by 0.64%

- Genting Malaysia, down by 0.40%

- IHH Healthcare, which slid by 0.16%

- IOI Corporation, which gained 0.54%

- Kuala Lumpur Kepong, up by 0.70%

- Maxis, shedding 0.29%

- Maybank, which slumped by 0.59%

- MISC, down by 0.68%

- Petronas Chemicals, which perked up by 0.16%

- PPB Group, advancing by 0.85%

- Press Metal, which rose by 0.51%

- Public Bank and Sunway, both losing 0.25%

- RHB Capital, falling by 0.18%

- Sime Darby, jumping by 1.15%

- SD Guthrie, which skidded by 0.47%

- Telekom Malaysia, dropping by 0.44%

- Tenaga Nasional, easing by 0.14%

- YTL Corporation, tumbling by 1.05%

- YTL Power, plunging by 1.69%

- MRDIY and QL Resources, which remained unchanged.

In the United States, Wall Street's performance was inconclusive. Major indices opened higher but quickly fluctuated, eventually ending the day mixed and largely unchanged. The Dow Jones Industrial Average dipped by 31.08 points or 0.08% to close at 39,344.79. The NASDAQ added 50.98 points or 0.28%, hitting a record 18,403.74, and the S&P 500 increased by 5.66 points or 0.10%, also reaching a record at 5,572.85.

The inconsistent performance on Wall Street mirrors the prevailing uncertainty surrounding interest rates, especially ahead of key economic reports on consumer and producer prices. Market participants are also anticipated to closely watch Federal Reserve Chair Jerome Powell's congressional testimony this week for insights into the interest rate outlook.

Oil prices took a hit on Monday following the shutdown of some oil export facilities near Houston due to Hurricane Beryl. West Texas Intermediate (WTI) crude oil futures for August dropped by $0.83 or 1%, closing at $82.33 per barrel.