The Malaysia stock market experienced a pause in its three-day upward trend on Friday, where it had previously gained nearly a dozen points or 0.7%. Consequently, the Kuala Lumpur Composite Index (KLCI) now stands just short of the 1,620-point mark, though it is anticipated to rise again on Monday.
The outlook for Asian markets is generally positive, driven by expected bargain hunting in the technology sector. European and U.S. markets closed higher, suggesting that Asian markets will likely follow suit.
On Friday, the KLCI ended slightly lower due to weaknesses in the telecommunications sector as well as mixed performances from financial and plantation stocks. The index dipped 4.06 points or 0.25% to close at 1,619.06, with trading fluctuating between 1,616.22 and 1,622.97 throughout the day.
Among active stocks, Axiata fell by 0.41%, while Celcomdigi increased by 0.28%. CIMB Group and PPB Group rose by 0.56% each. Dialog Group saw a significant drop of 2.85%, whereas Genting surged by 1.10% and Genting Malaysia rose by 0.40%. IHH Healthcare decreased by 0.16%, Inari tumbled by 1.25%, and Kuala Lumpur Kepong edged up by 0.20%. Maxis shed 0.28%, Maybank declined by 0.20%, and MISC climbed by 0.47%. MRDIY gained 0.52%, Petronas Chemicals dropped by 0.65%, and Press Metal slid by 0.83%. Public Bank lost 0.24%, QL Resources skidded by 0.59%, and RHB Capital advanced by 0.54%. Sime Darby increased by 1.48%, SD Guthrie decreased by 0.47%, Telekom Malaysia dipped by 0.85%, Tenaga Nasional retreated by 0.96%, and IOI Corporation remained unchanged.
Wall Street provided an optimistic lead, with major indices opening higher and maintaining gains throughout the session.
The Dow Jones Industrial Average rallied by 247.10 points or 0.62%, closing at 40,000.90. The NASDAQ climbed 115.04 points or 0.63% to finish at 18,398.45, while the S&P 500 gained 30.81 points or 0.55%, ending at 5,615.35.
For the week, the Dow rose by 1.6%, the S&P 500 by 0.9%, and the NASDAQ by 0.3%.
The rebound on Wall Street was driven by traders seeking opportunities to buy stocks at lower levels following a significant drop on Thursday. This drop was partly due to a rotation out of leading tech stocks like Nvidia (NVDA). Traders also maintained a positive outlook on interest rates despite the Labor Department reporting a slightly higher than expected increase in producer prices for June.
Oil futures ended lower on Friday, pressured by data indicating a larger than anticipated uptick in U.S. producer prices for June. West Texas Intermediate Crude oil futures for August declined by $0.41, settling at $82.21 a barrel.
