The Malaysian stock market has finished higher now in five straight sessions, gathering more than 50 points or 3 percent along the way. The Kuala Lumpur Composite Index finished just above the 1,570-point plateau, and now investors are expected to lock in gains following the recent rally when the market kicks off trade on Monday.
The global forecast for the Asian markets calls for modest declines following the release of disappointing employment data out of the United States. Technology stocks, financials and steel companies are expected to trend lower, while oil companies, properties and airlines may provide support. The European and U.S. markets finished with mild losses on Friday, and now the Asian markets are expected to continue that trend.
The KLCI finished slightly higher on Friday as gains from the industrial issues were offset by selling pressure from the financial shares and the plantation stocks.
For the day, the index added 3.84 points or 0.24 percent to finish at 1,572.21 after trading between 1,564.29 and 1,573.63. Volume was 2.54 billion shares worth 3.45 billion ringgit. There were 526 gainers and 324 decliners, with 301 stocks finishing unchanged.
Among the gainers, Telekom Malaysia surged 4.8 percent, while Axiata also ended higher. Genting was unchanged, while CIMB Holdings, Sime Darby, Maybank and Maxis ended lower.
The lead from Wall Street is slightly pessimistic as stocks saw modest losses to close out the week on Friday after the December jobs report showed no marked improvement in the still weak labor market. Profit taking accounted for some of the day's losses, but stocks still finished well off of their worst levels.
The markets looked to the most important data point of the month before the start of trading, as the Labor Department said non-farm payroll employment increased by 103,000 jobs in December following an upwardly revised increase of 71,000 jobs in November. Economists had expected employment to increase by about 160,000 jobs.
Although employment increased by less than expected in December, revisions to the data from the past few months reflected a net increase of 70,000 jobs. Meanwhile, the report also showed that the unemployment rate fell to 9.4 percent in December from 9.8 percent in November. The unemployment rate had been expected to show a much more modest decrease to 9.7 percent. With the bigger than expected decrease, the unemployment rate fell to its lowest level since a matching rate in May of 2009.
In other news on the economic front, the Federal Reserve said that consumer credit increased by $1.35 billion in November following an upwardly revised $7.0 billion increase in October. Economists had expected credit to increase by about $2 billion compared to the $3.4 billion increase originally reported for the previous month.
In corporate news, Lawson Software (LWSN) fell after its second-quarter revenues rose to $187.5 million, short of estimates for $188.55 million. Shares slipped to a five-week closing low.
Liz Claiborne (LIZ) was also under pressure after it lowered its fourth quarter guidance, citing December sales and gross profit shortfalls by some of its brands. The stock fell to its worst closing level in over three months.
On the other hand, telecom services firm Global Payments (GPN) moved up after its second quarter earnings and revenues topped estimates and its 2011 forecast also firmly beat expectations. The stock rose to a one-year closing high.
In other news, President Barack Obama named Gene Sperling as the director of the National Economic Council. Sperling, who previously held the post under former President Bill Clinton, will replace the departing Larry Summers.
The Dow fell by 22.55 points or 0.2 percent to 11,674.76, the NASDAQ slid by 6.72 points or 0.2 percent to 2,703.17 and the S&P 500 declined by 2.35 points or 0.2 percent to 1,271.50. For the week, the Dow and the S&P 500 gained 0.8 percent and 1.1 percent, respectively, while the NASDAQ jumped by 1.9 percent.
In economic news, Malaysia will on Monday provide industrial production figures for November, with forecasts calling for an increase of 6 percent on year. That follows a 3 percent gain in October.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.