The Malaysian stock market has recorded gains for three consecutive trading days, accumulating nearly a dozen points or a 0.7 percent increase. The Kuala Lumpur Composite Index (KLCI) currently hovers just below the 1,625-point mark, but it may see little movement on Friday.
Globally, there is a forecast for profit-taking, particularly in the technology sectors. While European markets closed higher, U.S. stock exchanges posted declines, suggesting that Asian markets may follow suit.
On Thursday, the KLCI experienced modest gains, influenced by mixed performances across financial shares, plantation stocks, and telecoms. The index increased by 4.74 points, or 0.29 percent, to close at 1,623.12, with trading ranges between 1,620.02 and 1,628.35.
Among active stocks, Axiata decreased by 1.20 percent, Genting dipped by 0.22 percent, while Genting Malaysia rose by 1.20 percent. IHH Healthcare saw a 0.63 percent uptick, IOI Corporation edged up by 0.27 percent, and Kuala Lumpur Kepong fell by 1.30 percent. Maxis rallied by 2.02 percent, Maybank gained 0.40 percent, MISC declined by 0.81 percent, and Petronas Chemicals dropped 0.32 percent. Other notable movements included PPB Group sinking by 0.56 percent, Press Metal falling by 1.32 percent, Public Bank losing 0.48 percent, and QL Resources soaring by 3.22 percent. RHB Capital improved by 0.72 percent, Sime Darby surged by 2.65 percent, SD Guthrie climbed by 0.48 percent, Sunway surged by 4.33 percent, Telekom Malaysia increased by 1.15 percent, Tenaga Nasional jumped by 1.39 percent, YTL Corporation advanced by 1.06 percent, and YTL Power tumbled by 1.34 percent. Celcomdigi, CIMB Group, and MRDIY remained unchanged.
Wall Street provided a mostly negative lead for the markets. The major indices opened lower on Thursday, with the Dow eking out a small gain, while the S&P and NASDAQ retreated from record highs. The Dow rose by 32.39 points or 0.08 percent to finish at 39,753.75. Meanwhile, the NASDAQ dropped 364.04 points or 1.95 percent to close at 18,283.41, and the S&P 500 fell 49.37 points or 0.88 percent to end the day at 5,584.54.
Initial optimism regarding interest rates supported early gains on Wall Street; however, this quickly dissipated as traders appeared to have already accounted for a potential rate cut in September. The subsequent sell-off was led by traders cashing in on recent market strength, with major tech stocks like Nvidia (NVDA) leading the decline.
Nevertheless, the Federal Reserve is still expected to lower rates in September, supported by a Labor Department report showing prices in the U.S. unexpectedly dipped slightly in June.
In commodities, oil futures settled higher on Thursday, buoyed by hopes for an interest rate cut by the Federal Reserve following positive inflation data. West Texas Intermediate Crude oil futures for August closed at $82.62 a barrel, down $0.52.
Domestically, Malaysia will release May industrial production numbers later today, with forecasts suggesting a growth of 3.5 percent, down from 6.1 percent in April.
