Malaysia Bourse May Snap Losing Streak On Thursday

The Malaysia stock market has moved lower in four straight sessions, although it has eased just five points or 0.3 percent in that span. The Kuala Lumpur Composite Index remains just above the 1,530-point plateau although it may find support on Thursday.

The global forecast for the Asian markets is mildly positive, with stimulus optimism tempered by sinking crude oil prices. The European and U.S. markets were up and the Asian bourses are tipped to follow that lead.

The KLCI finished barely lower again on Wednesday following losses from the plantations and a mixed picture from the financial sector.

For the day, the index dipped 1.48 points or 0.10 percent to finish at 1,530.15 after trading between 1,523.42 and 1,531.03. Volume was 4.800 billion shares worth 2.729 billion ringgit. There were 568 decliners and 383 gainers.

Among the actives, Axiata gained 0.26 percent, while CIMB Group collected 0.22 percent, Dialog Group spiked 1.03 percent, Digi.com and PPB Group both jumped 0.98 percent, Genting tumbled 0.61 percent, Genting Malaysia added 0.35 percent, IHH Healthcare soared 1.08 percent, IOI Corporation declined 0.53 percent, Kuala Lumpur Kepong skidded 0.59 percent, Maybank, Public Bank and Telekom Malaysia all sank 0.49 percent, MISC and Nestle both advanced 0.45 percent, MRDIY surged 2.17 percent, Press Metal tanked 0.98 percent, RHB Capital retreated 0.56 percent, Sime Darby rallied 0.46 percent, Sime Darby Plantations lost 0.25 percent, Top Glove plunged 2.03 percent and Petronas Chemicals, Petronas Dagangan, Maxis, Hap Seng, Hartalega Holdings and Tenaga Nasional were unchanged.

The lead from Wall Street is cautiously optimistic as the major averages opened higher on Wednesday but then spent the rest of the session hugging both sides of the unchanged line before ending slightly in the green.

The Dow gained 104.42 points or 0.30 percent to finish at 34,681.79, while the NASDAQ rose 1.42 points or 0.01 percent to end at 14,665.06 and the S&P 500 added 14.59 points or 0.34 percent to close at 4,358.13.

The higher close on Wall Street came as the minutes of the Federal Reserve’s latest monetary policy meeting signaled the central bank will not be in a hurry to begin scaling back its asset purchase program.

The minutes of the June meeting reiterated Fed Chair Jerome Powell’s view that “substantial further progress” towards the goals of maximum employment and price stability has not yet been met.

The Fed has repeatedly said it plans to continue to its asset purchases at a rate of at least $120 billion per month until “substantial further progress” has been made toward its goals.

Crude oil prices tumbled on Wednesday amid concerns that several leading oil producers will increase output following a disagreement over policy. West Texas Intermediate Crude oil futures for August ended down $1.17 or 1.6 percent at $72.20 a barrel.

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