Malaysia Stock Market Has Firm Lead For Monday's Trade

The Malaysia stock market bounced higher again on Friday, one session after snapping the seven-day winning streak in which it had spiked almost 75 points or 4.9 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,600-point plateau and it's expected to extend its gains on Monday.

The global forecast for the Asian markets is upbeat on solid earnings news and continued support from crude oil prices. The European and U.S. markets were up and the Asian bourses figure to follow that lead.

The KLCI finished modestly higher on Friday as gains from the plantations and telecoms were capped by weakness from the glove makers and a mixed picture from the financials.

For the day, the index added 5.76 points or 0.36 percent to finish at 1,598.28 after trading between 1,592.67 and 1,599.76. Volume was 4.961 billion shares worth 3.004 billion ringgit. There were 627 gainers and 419 decliners.

Among the actives, Axiata surged 2.24 percent, while CIMB Group and Petronas Gas both gained 0.59 percent, Digi.com rallied 1.38 percent, Genting gathered 1.16 percent, Genting Malaysia jumped 1.58 percent, Hartalega Holdings plummeted 3.22 percent, IHH Healthcare sank 0.59 percent, IOI Corporation perked 1.00 percent, Maxis added 0.63 percent, MISC climbed 1.54 percent, MRDIY rose 0.54 percent, Petronas Chemicals and Hong Leong Bank both eased 0.11 percent, PPB Group increased 0.33 percent, Press Metal dipped 0.16 percent, Public Bank collected 0.24 percent, RHB Capital spiked 1.59 percent, Sime Darby soared 1.73 percent, Sime Darby Plantations advanced 0.93 percent, Tenaga Nasional improved 0.21 percent, Top Glove tumbled 1.08 percent and Dialog Group, Kuala Lumpur Kepong, Maybank and Telekom Malaysia were unchanged.

The lead from Wall Street is broadly positive as the major averages opened solidly in the green on Friday and remained that way throughout the session.

The Dow surged 382.20 points or 1.09 percent to finish at 35,294.76, while the NASDAQ jumped 73.91 points or 0.50 percent to close at 14,897.34 and the S&P rose 33.11 points or 0.75 percent to end at 4,471.37. For the week, the Dow added 1.6 percent, the NASDAQ rose 2.2 percent and the S&P gained 1.8 percent.

Another batch of upbeat earnings news fueled the rally, led by financial giant Goldman Sachs (GS) and aluminum producer Alcoa (AA), among others.

Buying interest was also generated in reaction to a report from the Commerce Department showing an unexpected increase in U.S. retail sales in September. Also, the Labor Department said import prices in the U.S. increased less than expected last month.

Crude oil futures settled notably higher Friday after the International Energy Agency said oil demand is likely to increase significantly due to the energy crunch supporting prices. West Texas Intermediate Crude oil futures for November rose $0.97 or 1.2 percent at $82.28 a barrel. For the week, WTI Crude oil futures gained 3.7 percent, surging for the eighth straight week.

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