Rebound Expected For Malaysia Inventory Marketplace

(RTTNews) – The Malaysia stock market on Monday snapped the three-day winning streak in which it had gathered almost 20 points or 1.2 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,590-point plateau although it’s expected to bounce higher again on Tuesday.

The global forecast for the Asian markets is cautiously optimistic, with bargain hunting likely after overdone selling a day earlier. The European markets were down and the US bourses were up and the Asian markets figure to follow the latter lead.

The KLCI finished modestly lower on Monday as losses from the financials, telecoms and glove makers were mitigated by support from the plantation sector.

For the day, the index shed 11.99 points or 0.75 percent to finish at the daily low of 1,589.98 after peaking at 1,599.38. Volume was 3,133 billion shares worth 2,636 billion ringgit. There were 876 decliners and 236 gainers.

Among the actives, Axiata plummeted 4.44 percent, while CIMB Group eased 0.19 percent, Dialog Group tanked 2.65 percent, Digi.com retreated 1.82 percent, Genting weakened 1.53 percent, Genting Malaysia skidded 1.35 percent, Hartalega Holdings declined 1.96 percent, IHH Healthcare lost 0.76 percent, INARI stumbled 2.49 percent, IOI Corporation surged 6.77 percent, Kuala Lumpur Kepong soared 3.57 percent, Maybank fell 0.56 percent, Maxis tumbled 2.56 percent, MISC slid 0.51 percent, MRDIY and Hong Leong Bank both sank 0.86 percent, Petronas Chemicals slumped 1.75 percent , PPB Group advanced 0.70 percent, Press Metal plunged 4.04 percent, Public Bank was down 0.21 percent, Sime Darby dipped 0.43 percent, Sime Darby Plantations spiked 1.71 percent, Telekom Malaysia surrendered 2.24 percent, Tenaga Nasional shed 0.78 percent, Top Glove dropped 1.16 percent and RHB Capital was unchanged.

The lead from Wall Street ends up positive as the best averages spent most on Monday in negative territory before a later rally pushed them solidly into the green.

The Dow jumped 238.06 points or 0.70 percent to finish at 34,049.46, while the NASDAQ spiked 165.56 points or 1.29 percent to end at 13,004.85 and the S&P 500 gained 24.34 points or 0.57 percent to close at 4,296.12.

The late rebound on Wall Street came as treasuries pulled back as the day progressed. The ten-year yield continued to give ground after ending last Thursday’s trading at its highest closing level since December 2018.

The NASDAQ benefited from a surge by shares of Twitter (TWTR), which shot up by 5.7 percent after the social media giant accepted billionaire Elon Musk’s buyout deal valued at about $44 billion.

The soft start was the result of lingering concerns about the outlook for interest rates ahead of the Federal Reserve’s monetary policy meeting next week, as well as concerns about global economic growth amid a surge in Covid-19 cases in China.

Crude oil prices fell sharply on Monday as a spike in Covid cases in China raised concerns about energy demand. A strong US dollar amid rising prospects of a series of sharp interest rate hikes by the Federal Reserve also weighed on crude oil prices. West Texas Intermediate Crude oil futures for June ended down by $3.53 or 3.5 percent at $98.54 a barrel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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