The Malaysia stock market on Thursday saw an end to a four-day winning streak in which it had gained over 30 points or approximately 2%. The Kuala Lumpur Composite Index (KLCI) now rests just below the 1,625-point level, although analysts anticipate a rebound on Friday.
The global outlook is optimistic following the Federal Reserve's decision to reduce its benchmark interest rate by 25 basis points. This sentiment boosted European and U.S. markets, with expectations that Asian stock exchanges will follow suit.
On Thursday, the KLCI closed slightly lower, influenced by declines in plantation stocks, industrials, and telecommunications, while the financial sector showed mixed results. Specifically, the index dropped 10.89 points or 0.67%, concluding the day at 1,623.28, after fluctuating between 79,419.34 and 80,563.42.
In terms of market activity, Axiata fell 2.58%, Celcomdigi decreased 1.47%, CIMB Group slipped 0.24%, Genting dropped 1.74%, and Genting Malaysia went down 2.17%. IHH Healthcare and Tenaga Nasional both saw a slight decline of 0.14%, IOI Corporation decreased 1.52%, Kuala Lumpur Kepong lost 1.26%, and Maxis was down 2.49%. Other movements included Maybank's dip by 0.19%, MISC's rise by 1.92%, MRDIY's plunge by 4.46%, and Nestle Malaysia's fall by 1.19%. Petronas Chemicals retreated 1.80%, PPB Group lost 2.75%, Press Metal saw a decline of 3.31%, while Public Bank gained 0.22%. Meanwhile, QL Resources decreased by 0.21%, RHB Bank increased by 0.78%, Sime Darby and Hong Leong Financial dropped 0.85% each, SD Guthrie slid 0.80%, Telekom Malaysia edged down 0.30%, YTL Corporation fell significantly by 4.95%, YTL Power declined 1.76%, and Sunway and Petronas Gas remained unchanged.
The lead from Wall Street was positive, as major averages opened mixed but ended mostly higher. Notably, both NASDAQ and the S&P 500 achieved new record closing highs. The Dow marginally declined by 0.59 points, essentially remaining stable at 43,729.34. In contrast, the NASDAQ rose by 285.99 points or 1.51% to 19,269.46, and the S&P 500 increased by 44.06 points or 0.74% to 5,973.10.
The sustained bullishness on Wall Street reflects continued optimism regarding the potential implications of former President Donald Trump's return to political prominence, which is seen as potentially beneficial for businesses.
Investor confidence was bolstered by the Federal Reserve's widely anticipated decision to reduce interest rates by a quarter point.
Oil futures experienced a significant rise on Thursday, as traders balanced the implications of Trump's presidency on the global stage against the Federal Reserve's interest rate cut. West Texas Intermediate crude oil futures for December ended the session up by $0.67 or 0.93%, closing at $72.36 per barrel.
On the domestic front, Malaysia is set to release September's industrial production and unemployment figures later today. For August, industrial production grew by 4.1% year-on-year, while the unemployment rate stood at 3.2%.
