(RTTNews) – The Malaysia stock market on Wednesday ended the six-day losing streak in which it had slipped more than 30 points or 2.1 percent. The Kuala Lumpur Composite Index now sits just beneath the 1,510-point plateau and it’s expected to open to the upside again on Thursday.
The global forecast for the Asian markets is slightly positive on a slightly improved outlook for interest rates. The European markets were slightly higher and the U.S. bourses were mixed and little changed and the Asian markets figure to split the difference.
The KLCI finished modestly higher on Wednesday following gains from the telecoms and mixed performances from the financial shares and plantations.
For the day, the index rose 4.72 points or 0.31 percent to finish at the daily high of 1,507.97 after moving as low as 1,501.11.
Among the actives, Axiata added 0.49 percent, while Celcomdigi spiked 3.70 percent, CIMB Group rose 0.29 percent, Gamuda jumped 1.53 percent, IHH Healthcare improved 0.59 percent, IOI Corporation dropped 0.83 percent, Maxis accelerated 2.53 percent, Maybank shed 0.41 percent, MISC advanced 0.66 percent, MRDIY stumbled 2.52 percent, Nestle Malaysia lost 0.31 percent, Petronas Chemicals declined 1.22 percent, Petronas Dagangan surged 4.80 percent, Petronas Gas fell 0.22 percent, PPB Group tanked 2.50 percent, Press Metal skidded 1.01 percent, Public Bank collected 0.23 percent, QL Resources sank 0.68 percent, RHB Bank slumped 1.08 percent, Sime Darby retreated 1.73 percent, SD Guthrie gained 0.44 percent, Sunway strengthened 1.28 percent, Telekom Malaysia climbed 1.06 percent, Tenaga Nasional dipped 0.14 percent, YTL Corporation soared 4.44 percent, YTL Power rallied 2.81 percent and 99 Speed Mart Retail and Kuala Lumpur Kepong were unchanged.
The lead from Wall Street is uninspired as the major averages opened higher on Wednesday but gave back almost off of their gains to finish mixed and flat.
The Dow dropped 91.90 points or 0.22 percent to finish at 42,427.74, while the NASDAQ gained 61.53 points or 0.32 percent to close at 19,460.49 and the S&P 500 perked 0.44 points or 0.01 percent to end at 5,970.81.
The lackluster performance followed the release of some weaker than expected U.S. economic data. While the data raised concerns about the strength of the economy, it also generated some optimism about the outlook for interest rates.
In economic news, payroll processor ADP reported much weaker than expected private sector job growth in May. Also, the Institute for Supply Management said service sector activity in the U.S. unexpectedly contracted in May.
However, the Fed is still widely expected to leave interest rates unchanged at its next meeting later this month, with CME Group’s FedWatch Tool currently indicating a 95.6 percent chance the central bank will leave rates unchanged.
Crude oil futures moved to the downside during trading on Wednesday, reflecting easing supply concerns as rains slowed the growth of blazes that had disrupted Canadian crude production. West Texas Intermediate crude for July delivery fell $0.56 or 0 .9 percent to $62.85 a barrel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
