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Malaysia Bourse May Test Resistance At 1,500-Point Level

The Malaysia stock market has finished higher in four straight sessions, advancing more than 50 points or 3.5 percent in that span. The Kuala Lumpur Composite Index now rests just above the 1,490-point plateau and it may add to its winnings on Tuesday.

The global forecast for the Asian markets is upbeat on optimism for economic recovery following the Covid-19 measures. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The KLCI finished sharply higher on Monday following gains from the financial shares, plantation stocks and industrial issues.

For the day, the index climbed 16.89 points or 1.11 percent to finish at 1,490.14 after trading between 1,473.55 and 1,492.55. Volume was 10.308 billion shares worth 6.734 billion ringgit. There were 575 decliners and 511 gainers.

Among the actives, Top Glove skyrocketed 18.63 percent, while Hartalega Holdings surged 18.31 percent, Petronas Gas soared 4.62 percent, Public Bank plummeted 3.95 percent, CIMB Group accelerated 3.70 percent, Malaysia Airports Holdings spiked 3.47 percent, RHB Capital jumped 3.38 percent, Dialog Group climbed 3.15 percent, Sime Darby gathered 2.84 percent, Genting Malaysia perked 2.61 percent, Sime Darby Plantations advanced 1.80 percent, Press Metal added 1.61 percent, Genting gained 1.27 percent, AMMB Holdings rose 1.00 percent, Maybank collected 0.94 percent, Maxis lost 0.74 percent, Digi.com increased 0.67 percent, Kuala Lumpur Kepong was up 0.45 percent, IOI Corporation fell 0.44 percent, Petronas Chemicals eased 0.16 percent and Tenaga Nasional was unchanged.

The lead from Wall Street is positive as stocks extended last week's gains on Monday, sending the major averages to multi-month closing highs.

The Dow added 91.91 points or 0.36 percent to finish at 25,475.02, while the NASDAQ gained 62.18 points or 0.66 percent to end at 9,552.05 and the S&P 500 rose 11.42 points or 0.38 percent to close at 3,055.73.

The continued strength on Wall Street followed a report from the Institute for Supply Management showing U.S. manufacturing activity contracted at a slower rate last month. Also, the Commerce Department showed a less than expected pullback in U.S. construction spending in April.

Traders remain generally optimistic about economies reopening despite political unrest across the country following the death of George Floyd, which has forced a number of major retailers to temporarily close their stores in areas hit hard by protests.

Crude oil prices ticked lower on Monday as traders looked ahead to an upcoming meeting of the OPEC+ group as early as Thursday to discuss output. Crude for July delivery edged down $0.05 to $35.44 a barrel on the day.

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