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Malaysia Stock Market Poised To Extend Winning Streak

The Malaysia stock market has finished higher in three straight sessions, gathering more than 30 points or 1.9 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,565-point plateau and it's looking at another green light for Wednesday's trade.

The global forecast for the Asian markets is positive, with support expected from the oil and technology stocks. The European and U.S. markets were up and the Asian markets are tipped to open in similar fashion.

The KLCI finished modestly higher on Tuesday as gains from the financials and plantations were capped by weakness from the glove makers.

For the day, the index advanced 14.12 points or 0.91 percent to finish at the daily high of 1564.29 after moving as low as 1,546.19. Volume was 4.154 billion shares worth 2.838 billion ringgit. There were 639 decliners and 357 gainers.

Among the actives, Axiata and Petronas Gas both added 1.32 percent, while CIMB Group sank 0.88 percent, Dialog Group jumped 2.59 percent, Digi.com accelerated 2.78 percent, Genting gained 0.86 percent, Genting Malaysia advanced 1.39 percent, Hartalega Holdings plummeted 4.26 percent, Hong Leong Bank spiked 3.65 percent, Hong Leong Financial surged 5.83 percent, IHH Healthcare lost 0.45 percent, INARI plunged 2.93 percent, IOI Corporation strengthened 2.58 percent, Kuala Lumpur Kepong was up 0.18 percent, Maybank climbed 1.92 percent, Maxis rallied 2.69 percent, MISC rose 0.29 percent, MRDIY dropped 0.80 percent, PPB Group gathered 1.85 percent, Press Metal perked 2.38 percent, Public Bank collected 1.20 percent, RHB Capital skyrocketed 5.86 percent, Sime Darby Plantations increased 0.25 percent, Telekom Malaysia dipped 0.19 percent, Tenaga Nasional improved 0.22 percent, Top Glove tanked 2.80 percent and Sime Darby and Petronas Chemicals were unchanged.

The lead from Wall Street is firm as the major averages opened lower on Tuesday and were directionless through the morning but accelerated into the green in the afternoon, finishing near daily highs.

The Dow jumped 183.15 points or 0.51 percent to finish at 36,252.02, while the NASDAQ surged 210.62 points or 1.41 percent to end at 15,153.82 and the S&P 500 gained 42.78 points or 0.92 percent to close at 4,713.07.

The turnaround on Wall Street came after Federal Reserve Chair Jerome Powell testified before a Senate Banking Committee hearing on his nomination for another term. Powell highlighted elevated inflation as a result of supply chain issues and said the Fed would use all of its tools to prevent higher inflation from becoming entrenched.

While Powell's remarks have been described as hawkish, they are not seen as indicating the Fed will be more aggressive than already suggested by the minutes of the central bank's latest meeting.

Treasury yields moved to the downside in reaction to Powell's testimony, with the benchmark ten-year yield continuing to give ground after reaching its highest intraday level since January 2020 on Monday.

Crude oil prices moved sharply higher Tuesday, lifting the most active crude futures contract to the highest settlement in about two months. Hopes that the spread of the Omicron variant will not derail the global economy and adversely impact energy demand supported oil prices. West Texas Intermediate crude oil futures for February spiked $2.99 or 3.8 percent at $81.22 a barrel.

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