The Malaysian stock market has finished lower now in four straight sessions, shedding more than 25 points or 1.7 percent in that span. The Kuala Lumpur Composite Index finished just above the 1,555-point plateau, and now investors are expecting to see the market find some traction when it opens on Wednesday.
The global forecast for the Asian markets is broadly positive following several days of heavy selling - due mainly to optimism for a resolution in the U.S. debt limit debate. Technology stocks are expected to fuel the rally, along with properties, oil companies and natural gas stocks - although profit taking may bring gold down from a record closing high. The European and U.S. markets finished firmly in the green, and the Asian bourses are expected to follow that lead.
The KLCI finished modestly lower on Tuesday following mild downside from the financial shares, industrial issues and plantation stocks.
For the day, the index lost 6.94 points or 0.44 percent to finish at 1,555.64 after trading between 1,552.71 and 1,562.48. Volume was 977.863 million shares worth 1.939 billion ringgit. There were 429 decliners and 292 gainers, with 323 stocks finishing unchanged.
Among the actives, Inari, Petronas Chemicals, DVM Technology and Axiata Group all finished higher, while Maybank, CIMB Group and Sime Darby ended lower.
The lead from Wall Street is highly optimistic as stocks moved substantially higher on Tuesday, regaining some ground after trending lower in recent sessions. The markets benefited from upbeat news on a number of different fronts, including optimism about a potential resolution to the debt limit debate.
The early strength was partly due to the release of a report from the Commerce Department showing a much bigger than expected increase in housing starts in June. Housing starts jumped 14.6 percent to an annual rate of 629,000 in June from the revised May estimate of 549,000. Economists had expected housing starts to edge up to 575,000 from the 560,000 originally reported for May. Building permits, an indicator of future housing demand, also rose by 2.5 percent to an annual rate of 624,000 from the revised May rate of 609,000.
The markets also benefited from considerable strength that emerged in the technology sector on the heels of positive earnings news from tech giant IBM Corp. (IBM). Shares of IBM surged 5.7 percent to a record closing high.
Further buying interest was generated by remarks from U.S. President Barack Obama, who indicated that "some progress" has been made in the negotiations to raise the debt limit and avoid a default. Obama praised a deficit reduction proposal from a bipartisan group of senators that he said is "broadly consistent" with the approach he favors. The proposal from the so-called "Gang of Six" would reduce the nation's budget deficit by $3.7 trillion over ten years.
Meanwhile, shares of Bank of America (BAC) fell by 1.5 percent after the financial services giant reported a second quarter loss of $8.8 billion compared to a year-ago profit due to a settlement with investors and plunging revenues. Goldman Sachs (GS) also closed in the red after reporting Q2 earnings that rose to $1.85 per share but came in well below analyst estimates for $2.27 per share.
The major averages closed firmly in positive territory, not far off their best levels of the day. The Dow surged up by 202.26 points or 1.6 percent to 12,587.42, the NASDAQ jumped 61.41 points or 2.2 percent to 2,826.52 and the S&P 500 shot up 21.29 points or 1.6 percent to 1,326.73.
In economic news, Malaysia will on Wednesday release the inflation rate for June, with analysts expecting the rate to rise to 3.6 percent from 3.3 percent in May.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.