The Malaysian stock market has witnessed a decline for three consecutive sessions, dropping over 15 points or 1 percent during this period. The Kuala Lumpur Composite Index now hovers just below the 1,615-point mark, but there are indications that a reversal might be on the horizon come Monday.
The global forecast for the Asian markets is optimistic, given the improved outlook for interest rates. Both European and U.S. markets experienced substantial gains, and it is anticipated that Asian markets will follow this positive trend.
On Friday, the KLCI ended slightly down, impacted by losses in the telecommunications sector and mixed outcomes in the financial and plantation stocks.
For the day, the index dropped 2.30 points or 0.14 percent to close at 1,612.88, fluctuating between 1,610.65 and 1,616.83 during trading hours.
Among the actively traded stocks, Axiata fell 1.65 percent, while Celcomdigi decreased by 0.27 percent. CIMB Group dipped 0.28 percent. Conversely, Genting Malaysia rose 0.39 percent, Kuala Lumpur Kepong edged up 0.10 percent, and MRDIY jumped 1.49 percent. However, Nestle Malaysia tumbled 5.00 percent. Other notable movements included Petronas Chemicals, which slipped 0.50 percent, and PPB Group, which advanced 0.83 percent. Telecommunications companies like Telekom Malaysia saw a rise of 0.29 percent, while Tenaga Nasional increased by 0.14 percent. Stocks such as Maxis, Maybank, Genting, Public Bank, IHH Healthcare, and Hong Leong Bank remained unchanged.
An upbeat lead from Wall Street supported the general positive sentiment. Major indices opened higher on Friday and stayed in the green all day. The Dow soared 654.27 points or 1.64 percent to settle at 40,589.34. The NASDAQ increased by 176.16 points or 1.03 percent, and the S&P 500 climbed 59.88 points or 1.11 percent.
For the week, the Dow added 0.8 percent, while the NASDAQ slid 2.1 percent, and the S&P 500 fell by 0.8 percent.
The strong performance on Wall Street was bolstered by inflation data from the Commerce Department, which heightened confidence about a potential interest rate reduction by the Federal Reserve in September. Additionally, revised data from the University of Michigan indicated that consumer sentiment in the U.S. deteriorated less than initially estimated in July.
Oil prices dipped on Friday due to concerns about demand in light of the economic slowdown in China. Prospects of a ceasefire in Gaza also contributed to this downtrend. West Texas Intermediate Crude oil futures for September decreased by $1.12, or 1.4 percent, closing at $77.16 a barrel. Over the week, WTI crude futures saw a decline of 1.9 percent.
