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Malaysia Bourse May Crack Resistance At 1,600 Points

The Malaysia stock market has alternated between positive and negative finishes through the last four trading days since the end of 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 above the 1,590-point plateau and it may add to its winnings on Monday.

The global forecast for the Asian markets is upbeat on optimism for a treatment for the Covid-19 virus. The European and U.S. markets were firmly higher on Friday and the Asian bourses are tipped to open in similar fashion.

The KLCI finished modestly higher on Friday following gains from the plantations and a mixed picture from the financial shares.

For the day, the index gained 8.59 points or 0.54 percent to finish at the daily high of 1,591.84 after moving as low as 1,574.08. Volume was 8.699 billion shares worth 5.037 billion ringgit. There were 657 decliners and 425 gainers.

Among the actives, Top Glove surged 3.49 percent, while Malaysia Airports Holdings plummeted 2.93 percent, Hartalega Holdings soared 2.77 percent, Petronas Chemicals plunged 2.17 percent, Sime Darby spiked 1.42 percent, Sime Darby Plantations accelerated 1.41 percent, CIMB Group and IHH Healthcare both jumped 1.33 percent, Digi.com climbed 1.17 percent, Tenaga Nasional tumbled 1.05 percent, PPB Group gathered 1.01 percent, Kuala Lumpur Kepong perked 0.94 percent, Maxis advanced 0.76 percent, Genting sank 0.73 percent, Press Metal added 0.42 percent, Dialog Group gained 0.26 percent, RHB Capital fell 0.20 percent, Maybank eased 0.13 percent and Public Bank, Axiata Group, AMMB Holdings, IOI Corporation, Genting Malaysia and MISC all were unchanged.

The lead from Wall Street is positive as stocks showed a strong move to the upside on Friday, denting losses from the previous session.

The Dow jumped 369.21 points or 1.44 percent to finish at 26,075.30, while the NASDAQ added 69.69 points or 0.66 percent to end at 10,617.44 and the S&P 500 advanced 32.99 points or 1.05 percent to close at 3,185.04.

The strength on Wall Street came after Gilead Sciences (GILD) said remdesivir showed a sharp mortality risk drop when used to treat patients suffering of coronavirus. Also, BioNTech's CEO told The Wall Street Journal the German biotechnology company's coronavirus vaccine candidate could see approval by December.

The upbeat treatment and vaccine news overshadowed the news that the U.S. reported a record daily increase in new coronavirus cases of more than 63,000.

Crude oil futures rebounded on Friday thanks to an upward revision in the energy demand forecast by the International Energy Agency. West Texas Intermediate Crude oil futures for August ended up $0.93 or 2.4 percent at $40.55 a barrel.

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