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Renewed Selling Pressure Expected For Malaysia Bourse

The Malaysia stock market on Friday ended the three-day slide in which it had stumbled more than a dozen 5 points or 0.8 percent. The Kuala Lumpur Composite Index now sits just beneath the 1,590-point plateau although it's likely to head south again on Monday.

The global forecast for the Asian markets is soft on concerns over the outlook for interest rates. The European and U.S. markets were sharply lower on Friday and the Asian markets are tipped to follow suit.

The KLCI finished sharply higher on Friday following gains from the plantation stocks and glove makers, while the financials and telecoms were mixed.

For the day, the index jumped 18.19 points or 1.16 percent to finish at the daily high of 1,589.05 after moving as low as 1,565.74. Volume was 6.295 billion shares worth 4.765 billion ringgit. There were 563 gainers and 456 decliners.

Among the actives, Axiata accelerated 2.76 percent, while CIMB Group sank 0.65 percent, Dialog Group fell 0.34 percent, Digi.com plummeted 3.02 percent, Genting gained 0.79 percent, Genting Malaysia climbed 2.06 percent, Hartalega Holdings rallied 1.81 percent, IHH Healthcare spiked 3.17 percent, IOI Corporation rose 0.52 percent, Kuala Lumpur Kepong gathered 2.58 percent, Maybank and Nestle both increased 0.37 percent, Maxis dropped 0.89 percent, MISC jumped 2.31 percent, Petronas Chemicals tumbled 0.99 percent, PPB Group was up 0.11 percent, Press Metal perked 2.73 percent, Public Bank collected 0.24 percent, Sime Darby added 0.90 percent, Sime Darby Plantations skyrocketed 7.06 percent, Supermax soared 3.31 percent, Telekom Malaysia advanced 1.32 percent, Tenaga Nasional surged 4.92 percent, Top Glove strengthened 1.51 percent and RHB Capital was unchanged.

The lead from Wall Street is decidedly negative as stocks opened lower on Friday and remained in the red throughout the session.

The Dow plunged 533.37 points or 1.58 percent to finish at 33,290.08, while the NASDAQ dropped 130.97 points or 0.92 percent to end at 14,030.38 and the S&P 500 sank 55.41 points or 1.31 percent to close at 4,166.45.

For the week, the Dow plunged 3.4 percent, the NASDAQ dipped 0.3 percent and the S&P fell 1.9 percent.

Concerns about the outlook for monetary policy continued to weigh on the markets following recent Federal Reserve comments. The Fed's forecast for two interest rates hikes in 2023 has led to speculation that the central bank will soon start tapering its asset purchases.

In addition, Federal Reserve Bank of St Louis President James Bullard suggested that rates could be hiked as early as next year, touching off a wave of selling.

Crude oil prices moved higher on Friday amid optimism about energy demand in the U.S. thanks to reopening of businesses after lockdowns. West Texas Intermediate Crude oil futures for July rose $0.60 or 0.8 percent at $71.64 a barrel. WTI Crude oil futures gained 1 percent in the week.

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