Over the past three trading sessions, the Malaysian stock market has experienced a downward trend, losing nearly 10 points or 0.6 percent. As a result, the Kuala Lumpur Composite Index (KLCI) currently hovers just below the 1,610 mark, though it is anticipated to find some support on Thursday.
The global outlook for Asian markets appears optimistic, spurred by the Federal Open Market Committee's (FOMC) recent rate decision. European markets saw gains, U.S. markets presented mixed results, and Asian markets are expected to follow suit with a balanced outcome.
On Wednesday, the KLCI ended slightly lower amid losses in the financial sector and mixed performances in the plantation and telecom sectors.
For the day, the index fell by 2.54 points, or 0.16 percent, closing at a daily low of 1,608.95 after reaching a high of 1,618.99.
Notable movements among active stocks included Celcomdigi, which dropped 0.79 percent, Genting with a 0.21 percent gain, and Genting Malaysia and IOI Corporation, both of which declined by 0.78 percent. Other significant shifts saw IHH Healthcare decrease by 0.48 percent, Kuala Lumpur Kepong surge by 1.85 percent, Maxis lose 0.27 percent, Maybank slide by 0.20 percent, and MISC tumble by 1.28 percent. MRDIY rallied with a 1.56 percent increase, Petronas Chemicals eased by 0.15 percent, Press Metal fell by 1.35 percent, and Public Bank sank by 0.49 percent. QL Resources, RHB Capital, Sime Darby, and SD Guthrie also saw declines. Conversely, Telekom Malaysia jumped by 1.67 percent and Tenaga Nasional added 0.58 percent. YTL Corporation dropped by 0.55 percent, while YTL Power, Axiata, CIMB Group, and PPB Group remained unchanged.
Wall Street offered a cautiously optimistic lead, with major averages starting higher on Wednesday. However, the Dow Jones Industrial Average struggled to maintain its gains and ultimately dipped into the negative.
The Dow decreased by 35.21 points, or 0.09 percent, closing at 38,712.21. Meanwhile, the NASDAQ surged by 264.89 points, or 1.53 percent, ending at 17,608.44, and the S&P 500 climbed by 45.71 points, or 0.85 percent, finishing at 5,421.03.
The initial rally on Wall Street was fueled by a Labor Department report indicating that U.S. consumer prices remained flat in May, fostering renewed optimism about the interest rate outlook.
However, later in the day, the Federal Reserve's policy announcement tempered expectations, indicating that officials now anticipate only one interest rate cut this year.
The Fed acknowledged moderate progress towards its inflation targets in recent months but maintained that officials need further assurance of sustained movement towards those targets before considering rate cuts.
Oil prices rose on Wednesday amidst hopes of heightened demand and tighter supply conditions later in the year, coupled with a weakening dollar. West Texas Intermediate Crude oil futures for July increased by $0.60 to settle at $78.50 per barrel.
