In recent trading sessions, the Malaysian stock market has experienced a downturn, losing approximately 15 points, equating to a 1 percent decline. The Kuala Lumpur Composite Index (KLCI) currently hovers marginally above the critical 1,620-point mark. There is potential for recovery at the start of the week.
The global outlook for Asian markets is varied, influenced by the outcome of the U.S. elections. While European markets experienced a decline, U.S. stock markets saw gains, suggesting that Asian markets may see a balanced response.
On Friday, the KLCI saw a slight decrease, with sectors such as financials, telecommunications, and industrials facing losses, partially offset by gains in the plantation sector. The index slipped by 2.04 points or 0.13 percent, closing at its daily low of 1,621.24, after peaking at 1,627.62.
In terms of individual stock performance: Axiata and MISC both fell by 0.88 percent, Celcomdigi by 0.30 percent, while CIMB Group rose by 0.49 percent. Genting decreased by 2.03 percent, and Genting Malaysia by 0.89 percent. IHH Healthcare dropped 0.55 percent; however, IOI Corporation increased by 1.03 percent. Kuala Lumpur Kepong saw a 0.27 percent uptick, Maxis climbed 1.42 percent, and MRDIY rose by 0.93 percent. Conversely, Nestle Malaysia edged down 0.02 percent. Petronas Chemicals and QL Resources each increased by 0.41 percent. The PPB Group advanced 0.85 percent, while Press Metal fell by 0.43 percent. Public Bank slipped 0.22 percent, RHB Bank declined 0.52 percent, but SD Guthrie gained 0.60 percent, and Sunway added 0.65 percent. Telekom Malaysia rose 0.31 percent, Tenaga Nasional increased by 0.28 percent, while YTL Corporation plunged 2.84 percent and YTL Power fell 2.99 percent. Sime Darby, Petronas Dagangan, and Hong Leong Bank remained unchanged.
Meanwhile, the U.S. market provided a positive lead, as major indices began trading higher on Friday, eventually achieving modest gains and reaching new record closing highs. The Dow surged by 259.65 points or 0.59 percent, closing at 43,988.99, while the NASDAQ gained 17.32 points or 0.09 percent, ending at 19,286.78. The S&P 500 increased by 22.44 points or 0.38 percent, finishing at 5,995.54. Over the week, the NASDAQ leaped by 5.7 percent, the S&P 500 jumped 4.7 percent, and the Dow advanced by 4.6 percent.
The market's optimism has been fueled by a favorable reaction to former President Donald Trump's dominant win in the U.S. presidential race, anticipated to be beneficial for businesses. Furthermore, investors are processing the Federal Reserve's decision to cut interest rates by a quarter-point, a move that was largely expected. Fed Chair Jerome Powell emphasized that future rate decisions would not follow a predetermined path, considering conditions on a meeting-by-meeting basis.
Oil prices declined sharply on Friday due to concerns over demand, driven by reports of decreased oil imports from China and dissatisfaction with the limited scale of China's new stimulus measures. West Texas Intermediate crude oil futures for December dropped by $1.98 or 2.7 percent, concluding at $70.38 a barrel, despite a 1 percent gain over the week.
