The Malaysian stock market rebounded on Thursday, reversing its previous session's dip that had interrupted a three-day winning streak. This recovery added over 25 points, or 1.6 percent, to the Kuala Lumpur Composite Index (KLCI), which now stands slightly above the 1,665-point mark. Expectations are positive for another upward movement on Friday.
Globally, the outlook for Asian markets is optimistic, buoyed by favorable economic and interest rate prospects. European and U.S. markets posted significant gains, and it is anticipated that Asian markets will follow suit, though there could be some profit-taking as the trading day progresses.
On Thursday, the KLCI saw modest gains driven by the industrial and telecom sectors, which were somewhat offset by weaker financials and mixed results from the plantation sector. For the day, the index climbed 5.05 points or 0.30 percent to close at 1,665.65, trading within a range of 1,657.13 to 1,665.84.
In terms of individual performances, Axiata rose by 0.40 percent, while Celcomdigi strengthened by 1.33 percent. CIMB Group declined by 0.48 percent, and Genting increased by 0.97 percent. IHH Healthcare and PPB Group both improved by 0.56 percent, whereas IOI Corporation edged up by 0.26 percent. Kuala Lumpur Kepong slipped by 0.29 percent, and Maxis surged by 2.83 percent. Maybank fell by 0.37 percent, MISC added 0.37 percent, MRDIY rallied by 2.03 percent, Petronas Chemicals accelerated by 2.17 percent, and Press Metal jumped by 1.65 percent. Public Bank and Sime Darby both lost 0.42 percent, QL Resources advanced by 0.85 percent, RHB Bank edged up by 0.32 percent, SD Guthrie increased by 0.43 percent, Sunway skyrocketed by 5.80 percent, Telekom Malaysia eased by 0.15 percent, Tenaga Nasional sank by 0.68 percent, YTL Corporation surged by 4.84 percent, YTL Power soared by 4.25 percent, while Genting Malaysia remained unchanged.
Wall Street offered a broadly positive lead, with major indices opening strong and maintaining their upward momentum throughout the session. The Dow Jones Industrial Average surged 522.09 points or 1.26 percent to finish at 42,025.19. The NASDAQ Composite rallied 440.68 points or 2.51 percent to close at 18,013.98, while the S&P 500 advanced 95.38 points or 1.70 percent, ending the day at 5,713.64.
The rally was largely fueled by traders digesting the Federal Reserve's recent decision to cut interest rates by half a percentage point. The Fed's projections of continuous rate reductions over the upcoming months and into the next year have generated optimism that the central bank can achieve a soft economic landing.
Further bolstering economic optimism, the U.S. Labor Department reported that initial claims for unemployment benefits dropped to a nearly four-month low last week.
Additionally, oil prices climbed on Thursday amid rising Middle East tensions that could potentially disrupt supply. West Texas Intermediate crude oil futures for October finished up by $1.04 or 1.5 percent, settling at $71.55 per barrel.
