The Malaysian stock market has seen upward momentum for four consecutive sessions, amassing over 30 points, which equates to a 2 percent increase. Currently, the Kuala Lumpur Composite Index stands slightly above the 1,630 mark, raising the potential for further gains on Thursday.
The outlook for Asian markets is optimistic, spurred by the decisive conclusion of the U.S. presidential election. While European markets experienced a dip, the U.S. stock indices saw an upswing, hinting that Asian markets might follow the same positive trend.
On Wednesday, the KLCI ended with moderate gains, reflecting mixed outcomes among sectors such as industrials, financials, plantations, and telecommunications. Specifically, the index rose by 13.47 points, or 0.83 percent, concluding the day at a peak of 1,634.17, after dipping to a low of 1,623.52.
Breaking down individual performances, Axiata fell by 1.69 percent, whereas CIMB Group edged up 0.99 percent. Genting and Genting Malaysia increased by 0.75 percent and 0.88 percent, respectively. IHH Healthcare saw a decline of 0.68 percent, Kuala Lumpur Kepong decreased by 0.36 percent, while Maxis took a hit, dropping 3.22 percent. Maybank rose 0.57 percent, MISC jumped 1.83 percent, and MRDIY gained 0.45 percent. Nestle Malaysia edged up marginally, while Petronas Chemicals dropped 0.60 percent. PPB Group improved by 0.55 percent, Press Metal experienced a 3.86 percent rise, and Public Bank strengthened by 1.35 percent. In contrast, QL Resources dipped by 0.21 percent and RHB Bank by 0.16 percent. Sime Darby and SD Guthrie saw declines of 0.42 percent and 0.99 percent, respectively. Sunway surged by 3.84 percent, Telekom Malaysia advanced 0.15 percent, Tenaga Nasional rallied 2.13 percent, YTL Corporation soared by 5.71 percent, YTL Power increased by 3.98 percent, with Celcomdigi, IOI Corporation, and Hong Leong Bank remaining stable.
The positive momentum from Wall Street is notable, with the major indices opening higher and escalating as trading progressed, ultimately closing at session highs.
The Dow Jones Industrial Average leaped by 1,508.05 points, representing a 3.57 percent increase, to finish at 43,729.93. The NASDAQ Composite gained 544.29 points, or 2.95 percent, closing at 18,983.46, while the S&P 500 rose by 146.28 points, or 2.53 percent, to settle at 5,929.04.
The extended rally followed the announcement of former President Trump's victory over Vice President Kamala Harris in the U.S. presidential election. This decisive win alleviated potential uncertainty tied to prolonged vote counting and possible legal disputes.
Investors are now shifting their focus to the Federal Reserve, which is slated to release its newest monetary policy decision later today. Market expectations are largely pointing towards a 25 basis point interest rate cut, though the accompanying statement may influence predictions regarding future rate adjustments.
Meanwhile, oil prices saw a downward trend on Wednesday, affected by data indicating a larger-than-anticipated rise in U.S. crude inventories, coupled with the strengthening of the U.S. dollar. West Texas Intermediate Crude oil futures for December settled lower by $0.30, or 0.42 percent, closing at $71.69 per barrel.
