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Malaysia Bourse May See Support At 1,600 Points

Ahead of Friday's holiday for Eid al-Adha, the Malaysia stock market had ended the three-day winning streak in which it had advanced almost 25 points or 1.4 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,605-point plateau and it's poised to rebound on Monday.

The global forecast for the Asian markets is upbeat on solid earnings from technology stocks and anticipation for new stimulus measures. The European markets were down on Friday and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The KLCI finished modestly lower on Thursday following weakness from the industrials and financials, while the plantation stocks were mixed.

For the day, the index fell 7.67 points or 0.48 percent to finish at 1,603.75 after trading between 1,584.95 and 1,614.35. Volume was 11.917 billion shares worth 6.157 billion ringgit. There were 688 decliners and 390 gainers.

Among the actives, Public Bank plummeted 3.08 percent, AMMB Holdings plunged 3.01 percent, Malaysia Airports Holdings surged 2.92 percent, Petronas Chemicals tanked 1.59 percent, Axiata tumbled 1.54 percent, IHH Healthcare skidded 1.46 percent, Sime Darby spiked 1.40 percent, Petronas Gas accelerated 1.20 percent, Kuala Lumpur Kepong retreated 1.18 percent, Sime Darby Plantations jumped 1.17 percent, Maybank declined 1.03 percent, PPB Group climbed 1.03 percent, Top Glove sank 0.99 percent, Press Metal perked 0.83 percent, Dialog Group and Hartalega Holdings both gathered 0.80 percent, IOI Corporation advanced 0.66 percent, Maxis dropped 0.56 percent, Genting shed 0.52 percent, MISC added 0.51 percent, Genting Malaysia lost 0.44 percent, RHB Capital collected 0.40 percent, CIMB Group fell 0.28 percent, Tenaga Nasional rose 0.18 percent and Digi.com and Hong Leong Bank were unchanged.

After considerable volatility, the lead from Wall Street ended up to be positive thanks to a late-day surge on Friday, fueled by gains from the technology stocks.

The Dow added 114.62 points or 0.44 percent to finish at 26,428.32, while the NASDAQ soared 157.47 points or 1.49 percent to end at 10,745 and the S&P 500 rose 24.90 points or 0.77 percent to close at 3,271.12. For the week, The Dow eased 0.2 percent, the NASDAQ surged 3.7 percent and the S&P jumped 1.7 percent.

The higher close on Wall Street partly reflected a positive reaction to better than expected quarterly results from several leading technology companies, including Apple (AAPL), Amazon (AMZN) and Facebook (FB).

The upbeat tech earnings news overshadowed concerns about stalled negotiations over a new coronavirus stimulus package. Lawmakers appear at an impasse as the attempt to reach a compromise between a $1 trillion GOP relief proposal and the $3.4 trillion bill passed by the Democratic-controlled House in May.

In economic news, the Commerce Department said personal income slumped more than expected in June, although there was another substantial increase in personal spending. A separate report from the University of Michigan said consumer sentiment deteriorated more than expected in July.

Crude oil futures closed higher on Friday, buoyed by a report from the U.S. Energy Information Administration that said oil production fell sharply in May. West Texas Intermediate Crude oil futures for September ended up $0.35 or 0.9 percent at $40.27 a barrel.

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