Ahead of Federal Territory Day this Thursday, the Malaysian stock market experienced another surge, after putting an end to a six-day winning streak during which it garnered more than 35 points or a 2.1 percent increase. The Kuala Lumpur Composite Index currently stands just above the 1,510-point mark, and it is predicted to maintain a similar position tomorrow.
The global forecast for Asian markets is optimistic; many are of the opinion that the massive selling that occurred earlier this week was excessive. European markets were underperforming while the U.S. markets edged up, with Asian markets projected to follow the latter's lead.
On Wednesday, the KLCI (Kuala Lumpur Composite Index) witnessed a minimal rise due to the combination of market performance across financial, telecommunication, and plantation sectors.
The Index rose by 0.23 points or 0.02 percent to close at 1,512.98 after fluctuating between 1,509.55 and 1,516.40 throughout the day.
Among the active companies, AMMB Holdings saw a decline of 0.47 percent, whereas Axiata noted an increase of 0.74 percent. Also, Celcomdigi witnessed a leap of 1.43 percent and CIMB Group experienced a slight growth of 0.16 percent. On the other hand, both Genting and Genting Malaysia saw a decline by 1.26 percent and 0.74 percent respectively.
Wall Street's overall outlook was positive, with major averages opening marginally higher on Thursday, and maintaining the momentum throughout the day, ending near the peak of the session.
The Dow witnessed a rise of 369.54 points or 0.97 percent, concluding at 38,519.84, while the NASDAQ increased by 197.63 points or 1.30 percent to end at 15,361.64. The S&P 500 surged by 60.54 points or 1.25 percent to wrap up at 4,906.19.
This positive shift on Wall Street occurred as traders capitalized on the lowered stock prices after Wednesday's sell-off. Even though the Federal Reserve has hinted that interest rate cuts in March are unlikely, economists maintain that it is a question of 'when' and not 'if' the central bank will implement a rate reduction.
US economic updates indicate that first-time applications for jobless benefits saw an unexpected increase last week. Further, though the continuously falling treasury yields might have fueled buying interest, data from the Institute for Supply Management statement reflected an increase in US manufacturing activity in January, indicating ongoing contraction.
In energy market news, despite ongoing ceasefire talks in the Israel-Hamas conflict providing some downward pressure, oil futures dropped marginally on Thursday. Likely increases in energy demand helped to mitigate losses. West Texas Intermediate Crude oil futures for March dropped by $2.03 or 2.7 percent to rest at $73.82 per barrel.
