The Malaysian stock market has seen fluctuations between gains and losses over the past six trading days, following a two-day slump where it fell more than 10 points, equivalent to a 0.6% decrease. The Kuala Lumpur Composite Index is currently just under the 1,540-point mark, but a recovery is anticipated on Monday.
The outlook for Asian markets is generally optimistic, buoyed by promising performances from technology and oil sectors. European and U.S. markets have been on the rise, which bodes well for the Asian market’s opening.
On Friday, the KLCI modestly fell due to losses in the telecoms and financial sectors, while plantation stocks showed mixed performances. The index dropped by 13.42 points or 0.86%, ending at 1,538.02 after fluctuating between 1,537.11 and 1,556.22.
Notable performers included Axiata and Maxis, both falling 1.08%, as well as Celcomdigi, which dropped 1.15%. CIMB Group, Genting, and Genting Malaysia made significant losses as well. IOI Corporation and MRDIY made gains, while QL Resources and Tenaga Nasional also rallied. YTL Corporation and YTL Power saw steep falls.
Wall Street’s lead is positive; major averages stayed flat at the opening on Friday but increased throughout the day, with NASDAQ and S&P hitting record closing highs. The Dow improved by 0.23% to end at 39,087.38. The NASDAQ and S&P 500 showed impressive growth for the week, gaining 1.7% and 1.0% respectively, while the Dow slightly declined by 0.1%.
Computer hardware stocks saw a substantial surge after Dell reported encouraging results, hitting a record high for the NYSE Arca Computer Hardware Index.
On the economic front, the Institute for Supply Management recorded an unexpected contraction in U.S. manufacturing activity for February. Similarly, revised data from the University of Michigan reported an unsuspected drop in consumer sentiment for the same month. This soft data led to a fall in treasury yields, boosting hopes of a future interest rate cut by the Federal Reserve.
Oil prices reached a four-month peak on Friday, stimulated by reports of a surge in oil demand to the highest in four years in 2023, a trend expected to continue this year. West Texas Intermediate Crude oil futures for April jumped $1.71 or 2.2% to $79.97 a barrel, the highest closing price since November 6, 2023.
