The Malaysia stock market has shown gains over two consecutive sessions, accumulating nearly 8 points or 0.5 percent overall. The Kuala Lumpur Composite Index (KLCI) is currently positioned just above the 1,630-point mark but is likely to face a stagnant trend on Friday.
The global outlook for Asian markets remains pessimistic, driven by persistent selling pressure in technology and semiconductor stocks. European and U.S. markets mostly declined, and it’s anticipated that Asian markets will follow suit.
On Thursday, the KLCI ended marginally higher, buoyed by gains in the plantation sector and mixed results in financials and telecoms.
The index slightly increased by 0.27 points or 0.02 percent to close at 1,633.81, within a trading range of 1,627.93 to 1,634.24.
In active trading, Axiata rose by 1.57 percent, Celcomdigi increased by 0.81 percent, CIMB Group was up by 0.14 percent, while Genting and Hong Leong Bank dropped by 0.21 percent. Genting Malaysia gained 0.38 percent, IHH Healthcare dipped by 0.16 percent, IOI Corporation advanced by 1.06 percent, Kuala Lumpur Kepong rallied by 1.85 percent, and both Maxis and Petronas Gas surged by 1.98 percent. Maybank rose by 0.20 percent, MISC and Hong Leong Financial slid by 1.03 percent each, Petronas Chemicals increased by 0.17 percent, PPB Group soared by 2.46 percent, Press Metal plummeted by 8.18 percent, and Public Bank jumped by 1.92 percent. QL Resources added 0.44 percent, RHB Capital collected 0.35 percent, Sime Darby lost 0.37 percent, Sunway fell by 1.21 percent, Telekom Malaysia eased down by 0.14 percent, Tenaga Nasional dropped by 0.41 percent, YTL Power tumbled by 3.03 percent, and YTL Corporation, SD Guthrie, and MRDIY remained unchanged.
Wall Street's performance was lackluster as major averages opened slightly higher on Thursday but quickly declined, remaining deep in negative territory for the rest of the session.
The Dow Jones Industrial Average plunged 533.06 points or 1.29 percent to finish at 40,665.02. The NASDAQ lost 125.70 points or 0.70 percent to close at 17,871.22, and the S&P 500 sank 43.68 points or 0.78 percent to end at 5,544.59.
Wall Street's weakness stemmed partly from anxiety over the short-term market outlook following Wednesday’s tech sell-off, driven by reports that the Biden administration is considering stricter trade regulations against companies involved in the semiconductor sector in China.
In U.S. economic news, the Labor Department reported that first-time claims for unemployment benefits rose more than expected last week. Additionally, the Federal Reserve Bank of Philadelphia indicated that regional manufacturing growth was more widespread in July. The Conference Board also noted a slight decrease in its leading U.S. economic indicators for June.
Oil futures dipped slightly on Thursday due to concerns about China's oil demand outlook, coupled with a stronger dollar exerting further pressure on prices. West Texas Intermediate (WTI) crude oil futures for August settled down by $0.03 at $82.82 per barrel.
On a local note, Malaysia is set to release preliminary Gross Domestic Product (GDP) data for Q2 later today. In the previous quarter, GDP rose by 4.2 percent year-on-year.
