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Rebound Predicted For Malaysia Stock Market

Ahead of the long weekend for Eid-ul-Fitr, the Malaysia stock market had snapped the seven-day winning streak in which it had spiked more than 70 points or 5.3 percent. The Kuala Lumpur Composite Index now rests just above the 1,435-point plateau although it figures to bounce higher again on Wednesday.

The global forecast for the Asian markets is broadly positive on optimism for economic recovery as economies continue to reopen. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The KLCI finished sharply lower on Friday following losses from the financial shares, plantation stocks and industrial issues.

For the day, the index sank 15.35 points or 1.06 percent to finish at 1,436.76 after trading between 1,435.23 and 1,451.44. Volume was 6.686 billion shares worth 4.191 billion ringgit. There were 801 decliners and 289 gainers.

Among the actives, IHH Healthcare plummeted 4.74 percent, while Petronas Chemicals plunged 4.38 percent, Genting Malaysia tanked 2.97 percent, Maxis surged 2.83 percent, CIMB Group tumbled 2.53 percent, Dialog Group skidded 2.45 percent, IOI Corporation retreated 2.22 percent, Genting declined 2.21 percent, AMMB Holdings surrendered 1.96 percent, Axiata dropped 1.86 percent, RHB Capital sank 1.66 percent, Press Metal shed 1.58 percent, Public Bank lost 1.42 percent, Top Glove jumped 1.37 percent, Sime Darby Plantations fell 1.20 percent, Digi.com climbed 1.14 percent, Maybank slid 1.07 percent, Sime Darby advanced 0.99 percent, PPB Group added 0.84 percent, Kuala Lumpur Kepong dipped 0.82 percent, MISC slipped 0.49 percent, Tenaga Nasional was down 0.33 percent, Malaysia Airports Holdings rose 0.20 percent and Petronas Dagangan and Hartalega Holdings were unchanged.

The lead from Wall Street is upbeat as stocks opened firmly higher on Tuesday and remained well in the green throughout the session.

The Dow surged 529.95 points or 2.17 percent to finish at 24,995.11, while the NASDAQ added 15.63 points or 0.17 percent to 9,340.22 and the S&P 500 rose 36.32 points or 1.23 percent to end at 2,991.77.

The rally on Wall Street was fueled by optimism for a possible vaccine for the Covid-19 virus as U.S. biotech company Novavax said Monday it started the first human study of its experimental coronavirus vaccine and that it expects initial results on safety and immune responses in July.

There was also a positive reaction to news that several states are continuing to relax lockdown restrictions and reopening more businesses.

Crude oil prices moved higher on Tuesday amid rising optimism for improved energy demand. West Texas Intermediate Crude oil futures for July ended up $1.10 or 3.3 percent at $34.35 a barrel.

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