Malaysia Stock Market Due For Consolidation

The Malaysia stock market has moved higher in four straight sessions, gathering more than 40 points or 2.7 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,500-point plateau although it may run out of steam on Tuesday.

The global forecast for the Asian markets suggests mild consolidation amid concerns over growth and sinking oil prices. The European and U.S. markets were slightly lower and the Asian bourses are expected to follow that lead.

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

For the day, the index gained 9.84 points or 0.66 percent to finish at 1,502.07 after trading between 1,495.62 and 1,503.83. Volume was 2.385 billion shares worth 1.498 billion ringgit. There were 546 gainers and 355 decliners.

Among the actives, CIMB Group collected 0.77 percent, while Dialog Group strengthened 1.81 percent, Digi.com dropped 0.83 percent, Genting rose 0.63 percent, Genting Malaysia added 1.03 percent, Hartalega Holdings increased 1.46 percent, IHH Healthcare improved 1.72 percent, INARI advanced 1.05 percent, IOI Corporation jumped 2.48 percent, Kuala Lumpur Kepong soared 2.65 percent, Maybank was up 0.11 percent, Maxis shed 0.54 percent, MRDIY climbed 1.80 percent, Petronas Chemicals gathered 0.79 percent, Press Metal perked 0.82 percent, Sime Darby rallied 2.56 percent, Sime Darby Plantations gained 0.92 percent, Telekom Malaysia retreated 1.58 percent, Tenaga Nasional surged 2.91 percent, Top Glove spiked 2.59 percent and Axiata, MISC, Public Bank, RHB Capital, PPB Group and Petronas Gas were unchanged.

The lead from Wall Street ends up mildly negative as the major averages opened lower on Monday and bounced back and forth across the unchanged line before finally ending slightly in the red.

The Dow shed 45.95 points or 0.14 percent to finish at 32,799.18, while the NASDAQ fell 21.71 points or 018 percent to close at 12,368.98 and the S&P 500 dipped 11.67 points or 0.28 percent to end at 4,118.62.

Worries about slowing growth weighed on sentiment, but fairly encouraging corporate earnings updates helped limit market's downside.

In addition, investors are looking ahead to the crucial non-farm payroll data due later in the week.

In economic news, the S&P Global US Manufacturing PMI was revised slightly lower in July, while the Commerce Department said U.S. construction spending fell more than expected in June. Also, the Institute for Supply Management's Manufacturing PMI was down slightly in July but not as much as feared.

Crude oil prices fell sharply on Monday amid concerns about outlook for energy demand and ahead of this week's OPEC+ meeting. West Texas Intermediate Crude oil futures for September ended lower by $4.73 or 4.8 percent at $93.89 a barrel.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT