The Malaysian stock market turned right back to the upside again on Friday, one session after it had ended the two-day winning streak in which it had gathered more than 10 points or 0.6 percent. The Kuala Lumpur Composite Index finished just below the 1,565-point plateau, and now analysts are forecasting little movement at the opening of trade on Monday.
The global forecast is mixed with a hint of upside on easing concerns regarding the Greek debt crisis. Airlines are expected to provide support, along with property stocks and financials, while commodities remain slightly soft and technology stocks could see profit taking. The European markets finished slightly higher and the U.S. bourses were mixed but little changed - and the Asian markets are tipped to follow that lead.
The KLCI finished modestly higher on Friday as gains from the industrial stocks were limited by selling pressure from the plantations and financials.
For the day, the index added 9.19 points or 0.59 percent to end at 1,563.43 after trading between 1,556.04 and 1,564.07. Volume was 946.22 million shares worth 2.21 billion ringgit. There were 394 gainers and 345 decliners, with 352 stocks finishing unchanged.
Among the actives, Maybank, Hong Leong Bank, Hong Leong Financial, Petronas Gas, Kuala Lumpur Kepong and Panasonic all finished higher, while Malaysia Airport, BAT, PPB and Batu Kawan all ended lower.
The lead from Wall Street provides little clarity as stocks gave back ground on Friday after failing to sustain an initial upward move. The early strength was partly due to reassuring comments from French President Nicolas Sarkozy and German Chancellor Angela Merkel regarding efforts to provide further financial assistance to Greece.
After a two-hour meeting in Berlin, Sarkozy and Merkel announced that they had reached an agreement under which Germany would drop its demand that private investors participate in a new Greek bailout package, indicating that the participation of private creditors would be voluntary. Sarkozy called the agreement a "breakthrough" and noted that France and Germany want the new round of financial assistance to be worked out as quickly as possible.
However, a report from Reuters and the University of Michigan showing a notable deterioration in consumer sentiment in the month of June may have helped to offset some of the early buying interest. Reuters and the U of M said that the preliminary reading on their consumer sentiment index came in at 71.8 in June, down from the final May reading of 74.3. Economists had been expecting the index to edge down to a reading of 74.0.
News that Moody's placed Italy's credit ratings on review for possible downgrade also contributed to some market weakness. The reaction to the news reflected the continued concerns about the financial situation in Europe.
Additionally, some technology stocks came under pressure on the day, with wireless device maker Research in Motion (RIMM) leading the way lower after providing disappointing guidance. Shares of RIM fell by 21.5 percent to a nearly five-year closing low.
On the other hand, the Conference Board released a report showing a bigger than expected rebound by its U.S. leading economic indicators index in the month of May. The leading economic index rose by 0.8 percent in May following a revised 0.4 percent decrease in April. Economists had expected the index to edge up by 0.2 percent compared to the 0.3 percent drop originally reported for the previous month.
The major averages eventually ended the day on opposite sides of the unchanged line. While the NASDAQ fell 7.22 points or 0.3 percent to 2,616.48, the Dow rose 42.84 points or 0.4 percent to 12,004.36 and the S&P 500 climbed 3.86 points or 0.3 percent to 1,271.50. With the mixed performance on the day, the major averages also closed mixed for the week. The Dow rose by 0.4 percent for the week and the S&P 500 edged up by less than a tenth of a percent, while the NASDAQ fell by 1 percent. The modest gains by the Dow and the S&P 500 ended six-week losing streaks, while the NASDAQ fell for the fifth straight week and set a six-month closing low.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.