FX.co ★ Malaysia Stock Market Tipped To Open In The Red

The Malaysian stock market has experienced a decline over the past two sessions, shedding approximately 20 points, equivalent to a 1.2% decrease. Currently, the Kuala Lumpur Composite Index (KLCI) hovers slightly above the 1,640 mark and may face further losses going into Friday.

Globally, the outlook for Asian markets remains relatively stagnant as investors await crucial U.S. employment data expected later in the day. Both European and U.S. markets faced declines, and Asian markets are projected to follow suit.

On Thursday, the KLCI showed a modest increase, buoyed by gains in the financial sector and mixed results in the industrial and telecommunications sectors. The index saw a slight uptick of 2.24 points or 0.14%, closing at 1,641.55 after fluctuating between 1,630.45 and 1,643.82 throughout the session.

Among the actively traded stocks: Axiata edged up by 0.41%, while Celcomdigi declined by 0.80%. CIMB Group rose by 0.13%, Genting advanced by 0.48%, and Maybank increased by 0.76%, whereas Maxis fell by 0.26% and MISC decreased by 0.63%. Notably, Petronas Chemicals surged by 1.23%, while Petronas Dagangan and Petronas Gas experienced declines of 1.43% and 0.56%, respectively. Sunway recorded a significant rise of 1.94%.

The U.S. markets presented a lackluster performance with the major indices opening lower on Thursday and sustaining minor losses throughout the day. The Dow Jones Industrial Average fell by 184.93 points, or 0.44%, to close at 42,011.59. Meanwhile, the NASDAQ slipped by 6.65 points, or 0.04%, winding up at 17,918.47, and the S&P 500 decreased by 9.60 points, or 0.17%, concluding at 5,699.94.

Investor caution prevailed on Wall Street, with many traders hesitating to make substantial moves ahead of the Labor Department's much-anticipated monthly employment report due on Friday. The results of this report could influence forecasts for the U.S. economy and shape expectations about the Federal Reserve's forthcoming stance on interest rate adjustments.

In addition to domestic concerns, traders are monitoring the situation in the Middle East, where escalating tensions have significantly driven up crude oil prices. On Thursday, heightened conflict between Israel and Iran raised fears over potential disruptions in oil supply chains. As a result, West Texas Intermediate crude oil futures for November delivery soared by $3.61, or 5.2%, settling at $73.71 per barrel.