The Malaysian stock market has experienced a positive trajectory, marking gains for the second consecutive session with an increase of nearly 15 points, equating to approximately 1 percent. The Kuala Lumpur Composite Index is currently positioned slightly above the 1,615 mark, though there's speculation that this upward momentum may stall on Tuesday. The outlook for Asian markets is currently projected as neutral to slightly negative, in anticipation of the U.S. presidential election and the upcoming decision from the Federal Reserve on interest rates. European and U.S. markets have recently seen declines, suggesting that Asian markets could follow a similar trend. On Monday, the KLCI recorded modest gains, driven by strong performances in the telecommunications, plantation, and industrial sectors, while the financial sector displayed mixed results. The index rose by 12.45 points or 0.78 percent, closing at 1,616.43, having reached intraday lows of 1,607.75. Noteworthy performances were observed with Axiata rising by 1.73 percent, Celcomdigi by 0.11 percent, CIMB Group by 1.13 percent, Genting by 0.76 percent, and other significant positive movements from IOI Corporation and Kuala Lumpur Kepong among others. However, Public Bank saw a decline of 0.90 percent, while others remained unchanged.
Turning to Wall Street, the sentiment was subdued with major indices opening lower, maintaining this stance throughout most of the day, and ultimately closing in negative territory. The Dow Jones Industrial Average fell by 257.59 points or 0.61 percent to close at 41,794.60. The NASDAQ decreased by 59.93 points or 0.33 percent, finishing at 18,179.98, and the S&P 500 dropped 16.11 points or 0.28 percent, ending at 5,712.69. The hesitant trading on Wall Street was largely due to traders adopting a cautious approach ahead of the U.S. elections, which will see Vice President Kamala Harris contend with former President Donald Trump. With polls reflecting a highly competitive race, the results may not be immediate post-Election Day.
Additionally, market participants are anticipating the Federal Reserve's forthcoming monetary policy announcement, set for Thursday. The consensus predicts a rate cut by 25 basis points; however, attention will be paid to the Fed's statement for any indications of future rate reductions.
Furthermore, oil prices surged significantly on Monday, influenced by OPEC's postponement of plans to increase production and escalating tensions in the Middle East. West Texas Intermediate crude oil futures for December concluded up $1.98, a rise of approximately 2.85%, reaching $71.47 per barrel, continuing a four-day streak of gains.
