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Malaysia Stock Market May See Continued Support

The Malaysia stock market on Wednesday halted the five-day slide in which it had skidded more than 40 points or 2.5 percent. The Kuala Lumpur Composite Index now rests just above the 1,610-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is positive on global trade optimism and rising crude oil prices. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.

The KLCI finished modestly higher on Wednesday following gains from the telecoms and plantations, while the financial shares were mixed.

For the day, the index gathered 12.24 points or 0.77 percent to finish at 1,611.43 after trading between 1,601.04 and 1,617.43. Volume was 2.6 billion shares worth 2.1 billion ringgit. There were 599 gainers and 276 decliners.

Among the actives, Dialog Group surged 6.84 percent, while Hartalega Holdings soared 5.41 percent, Top Glove spiked 3.97 percent, Digi.com jumped 2.84 percent, Axiata Group climbed 2.79 percent, Genting Malaysia perked 1.63 percent, Sime Darby gathered 1.38 percent, IHH Healthcare advanced 0.91 percent, IOI Corporation added 0.71 percent, CIMB Group shed 0.58 percent, Maybank collected 0.56 percent, Petronas Chemicals gained 0.45 percent, Genting lost 0.31 percent, Sime Darby Plantations rose 0.21 percent, Tenaga Nasional fell 0.17 percent, Public Bank was up 0.09 percent and RHB Capital and Hap Seng Consolidated were unchanged.

The lead from Wall Street is upbeat as stocks shook off initial weakness and moved mostly higher on Wednesday, continuing to recover from Monday's sell-off.

The Dow added 115.97 points or 0.45 percent to end at 25,648.02, while the NASDAQ jumped 87.65 points or 1.13 percent to 7,822.15 and the S&P 500 rose 16.55 points or 0.58 percent to 2,850.96.

The strength on Wall Street reflected a positive reaction to reports President Donald Trump plans to delay imposing steep tariffs on auto imports. Reports indicated Trump plans to delay imposing the auto tariffs by up to six months in order to allow negotiations to continue.

Stocks initially came under pressure a Commerce Department showing an unexpected pullback in U.S. retail sales in April. Negative sentiment was also generated by a Federal Reserve report showing an unexpected drop in industrial output in April.

Crude oil futures inched higher on Wednesday, despite data from the Energy Information Administration that showed an unexpected increase in U.S. crude stockpiles last week. West Texas Intermediate Crude oil futures for June ended up $0.24 at $62.02 a barrel.

Closer to home, Malaysia will release Q1 numbers for gross domestic product and current account later today. In the three month prior, GDP was up 1.4 percent on quarter and 4.7 percent on year, while the current account surplus was 10.8 billion ringgit.

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