The Malaysian stock market has been on a downward trajectory, having decreased by almost 5 points or 0.3% in the previous three sessions. The Kuala Lumpur Composite Index sits slightly above the 1,600-point mark, but might see some support on Monday.
Forecast for Asian markets suggest a minor upside due to a conflict in the potential interest rate's predictions. While European markets were trending upwards, U.S. markets ended mixed and unchanged, suggesting that the Asian markets might reflect a blend of these outcomes.
On Friday, the KLCI marginally declined as plantation stocks suffered a few losses. However, the financial sector saw an increase, whereas telecom performances were inconsistent. The index witnessed a fall of 0.55 points or 0.03%, ending at 1,600.67.
Active stocks varied in performance; Axiata fell by 1.06%, whereas Celcomdigi and Public Bank increased by 0.24%. Both CIMB Group and Maybank grew by 0.30%, Genting added 0.66%, and Genting Malaysia rose by 0.38%. Nevertheless, Kuala Lumpur Kepong witnessed a downslide of 1.13%.
Stocks opening higher on Wall Street on Friday provided a cautiously optimistic lead. Despite giving some ground, the major averages closed mixed and mostly unchanged. The Dow Jones went up by 125.08 points or 0.3%, and the S&P 500 rose by 8.60 points or 0.2%, while the NASDAQ fell slightly by 5.40 points or 0.1%.
Over the week, the NASDAQ saw a surge of 1.14%, and the S&P 500 and the Dow Jones increased by 1.85% and 2.16% respectively. Wall Street experienced a resurgence of optimism regarding interest rates due to recent data indicating a softening U.S. labor market, thereby boosting investor confidence in a potential interest rate cut by the Federal Reserve.
However, these positive sentiments were tempered by a report from the University of Michigan displaying a sharp decline in U.S. consumer sentiment in May and a significant increase in inflation expectations for the following year.
Crude oil prices fell on Friday due to possible longer periods of high interest rates by the Federal Reserve and uncertainty about the future of oil demand. As a result, West Texas Intermediate Crude oil futures for June decreased by $1.00, ending at $78.26 a barrel.
