Malaysia Stock Market May Extend Wednesday’s Gains

The Malaysia stock market on Wednesday ended the three-day slide in which it had fallen more than 15 points or 0.9 percent. The Kuala Lumpur Composite Index now sits just above the 1,705-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is cautiously optimistic and fairly fluid in light of U.S. demands to acquire Greenland. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow that lead.

The KLCI finished modestly higher on Wednesday following gains from the financial shares and mixed performances from the plantation stocks and telecoms.

For the day, the index added 6.75 points or 0.40 percent to finish at 1,705.81 after trading between 1,693.95 and 1,708.62.

Among the actives, 99 Speed Mart Retail and Gamuda both tumbled 1.30 percent, while AMMB Holdings fell 0.31 percent, Axiata sank 0.40 percent, CIMB Group increased 0.61 percent, IHH Healthcare added 0.59 percent, IOI Corporation gained 0.50 percent, Kuala Lumpur Kepong dropped 0.99 percent, Maybank and SD Guthrie both gathered 0.36 percent, MISC climbed 1.04 percent, MRDIY surged 2.30 percent, Nestle Malaysia lost 0.34 percent, Petronas Chemicals rallied 1.21 percent, Petronas Dagangan advanced 0.67 percent, Petronas Gas spiked 2.06 percent, Press Metal soared 2.21 percent, Public Bank collected 0.42 percent, QL Resources expanded 0.75 percent, RHB Bank slipped 0.25 percent, Sime Darby jumped 1.90 percent, Sunway shed 0.36 percent, Telekom Malaysia improved 0.65 percent, YTL Corporation rose 0.44 percent, YTL Power vaulted 1.15 percent and Celcomdigi, PPB Group, Maxis and Tenaga Nasional were unchanged.

The lead from Wall Street is positive as the major averages opened higher on Wednesday and stayed in the green throughout the session, although not without volatility.

The Dow jumped 588.64 points or 1.21 percent to finish at 49,077.23, while the NASDAQ rallied 270.50 points or 1.18 percent to end at 23,224.82 and the S&P 500 climbed 87.76 points or 1.16 percent to close at 6,875.62.

The volatility on Wall Street came as traders reacted to President Donald Trump’s latest remarks about his efforts to take control of Greenland.

Early buying interest was generated in reaction to Trump’s speech at the World Economic Forum in Davos, Switzerland, where he ruled out the use of military force to take control of Greenland.

However, buying interest waned over the course of the morning amid lingering concerns about trade between the U.S. and Europe due to the dispute. But buying interest returned when Trump said he would not go forward with the tariffs he threatened to impose on several European nations

Crude oil posted incremental gains on Wednesday as traders assessed Trump’s speech at the World Economic Forum, where he sought negotiations on the U.S. bid to acquire Greenland. West Texas Intermediate crude for March delivery was up $0.10 or 0.17 percent at $60.46 per barrel.

Closer to home, the central bank in Malaysia will wrap up its monetary policy meeting later today and then announce its decision on interest rates; the central bank is widely expected to keep its benchmark lending rate unchanged at 2.75 percent.

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