The Malaysian stock market has experienced consecutive losses in recent sessions, falling almost 5 points or 0.3 percent. However, the Kuala Lumpur Composite Index remains just over the 1,600-point mark, which indicates a possibility of recovery on Friday.
The international outlook seems favorable due to an improved interest rate environment. Following positive trade in the European and U.S. markets, Asian markets are expected to echo this upward trend.
On Thursday, the KLCI saw a slight decrease due to losses in plantation stocks and telecoms, while financials experienced mixed results. The index fell 3.53 points or 0.22 percent to close at 1,601.22.
Specific stock activity included losses from Axiata and Celcomdigi, gains from CIMB Group, Genting, MRDIY, Petronas Chemicals, YTL Corporation, RHB Capital, Telekom Malaysia, Tenaga Nasional and YTL Power, while others such as Genting Malaysia, IHH Healthcare, Sime Darby, and Hong Leong Financial remained stable.
Wall Street showed modest gains on Thursday, as averages presented a bullish trend following the opening slump. The Dow posted a gain of 331.36 points or 0.85 percent, while the NASDAQ and the S&P 500 also reported positive results.
This surge was primarily prompted by a Labor Department report showing a higher-than-expected rise in U.S. unemployment benefit claims last week. The report revived hopes of the Federal Reserve potentially lowering interest rates in the coming months. Despite expectations to maintain interest rates in June, the chances for lower rates by September reached 89.3 percent, as per the CME Group's FedWatch Tool.
Oil prices increased on Thursday due to optimism around demand and recent data showing a significant drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for June improved by $0.27 to reach $79.26 a barrel.
On the domestic front, Malaysia is set to release March data for industrial production and unemployment. The expectation is for industrial production to increase 2.0 percent on year, moderating from 3.1 percent in February. The unemployment rate should remain stable at 3.3 percent.
