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Malaysia Stock Market May Test Resistance At 1,600 Points

The Malaysia stock market bounced higher again on Wednesday, one day after it had halted the six-day winning streak in which it had advanced more than 85 points or 5.6 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,585-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is cautiously optimistic, with optimism for economic recovery tempered by renewed coronavirus fears. The European markets were down and the U.S. markets were up and the Asian markets figure to split the difference.

The KLCI finished sharply higher on Wednesday following gains from the financial shares, plantations and telecoms.

For the day, the index climbed 16.78 points or 1.07 percent to finish at 1.583.50 after trading between 1,562.08 and 1,584.67. Volume was 11.808 billion shares worth 4.355 billion ringgit. There were 687 gainers and 369 decliners.

Among the actives, Hap Seng Consolidated skyrocketed 6.22 percent, while Public Bank surged 3.45 percent, CIMB Group soared 2.70 percent, Sime Darby spiked 2.36 percent, Maxis accelerated 2.32 percent, Digi.com jumped 2.14 percent, Malaysia Airports Holdings plunged 2.13 percent, Axiata climbed 2.05 percent, MISC rallied 1.91 percent, Sime Darby Plantations gathered 1.81 percent, Hartalega Holdings tumbled 1.68 percent, RHB Capital perked 1.61 percent, IOI Corporation advanced 1.36 percent, Maybank collected 1.15 percent, Petronas Chemicals skidded 1.06 percent, AMMB Holdings added 0.94 percent, PPB Group gained 0.79 percent, Top Glove rose 0.39 percent, Genting Malaysia shed 0.39 percent, Tenaga Nasional lost 0.34 percent, Dialog Group increased 0.26 percent, Press Metal was up 0.21 percent, IHH Healthcare fell 0.19 percent, Kuala Lumpur Kepong rose 0.18 percent and Petronas Gas and Genting were unchanged.

The lead from Wall Street is positive as stocks fluctuated early Wednesday before moving firmly to the upside as the day progressed.

The Dow gained 177.10 points or 0.68 percent to finish at 26,067.28, while the NASDAQ spiked 148.61 points or 1.44 percent to end at 10,492.50 and the S&P 500 collected 24.62 points or 0.78 percent to close at 3,169.94.

The choppy trading seen for much of the session came amid relatively light volume, with a lack of major U.S. economic news keeping traders on the sidelines.

The NASDAQ continued to benefit from strong gains by tech giants like Apple (AAPL), which surged 2.3 percent after Deutsche Bank raised its price target on the company's stock. Gains by Amazon (AMZN), Netflix (NFLX) and Facebook (FB) also helped lift the tech-heavy index to a new record closing high.

Crude oil prices rose Wednesday as a slightly higher demand forecast for next year by the Energy Information Administration helped offset a sharp jump in crude inventories last week. West Texas Intermediate Crude oil futures for August ended up $0.28 or 0.7 percent at $40.90 a barrel.

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