The Malaysia stock market rebounded modestly on Friday, breaking its five-day losing streak during which it had dropped over 15 points, equivalent to a 1 percent decline. The Kuala Lumpur Composite Index (KLCI) is now positioned just below the 1,610 mark and is anticipated to remain largely unchanged as the market opens on Monday.
Globally, forecasts for Asian markets indicate minimal movement in advance of the Federal Open Market Committee (FOMC) meeting scheduled later this week. Both European and U.S. markets experienced slight dips, and it is expected that Asian markets will likely reflect this trend.
On Friday, the KLCI showed modest gains due to upward movements in industrial and telecommunications sectors, though the financial and plantation sectors exhibited mixed performances. Specifically, the index rose by 6.67 points, or 0.42 percent, concluding at 1,608.75 after fluctuating between 1,603.74 and 1,611.98 throughout the day.
For individual stocks, Axiata saw an increase of 0.42 percent, while Celcomdigi and Maxis experienced slight declines of 0.56 percent each. Genting improved by 0.84 percent, with Genting Malaysia and Kuala Lumpur Kepong both up by 0.47 percent. MISC made a significant jump of 1.49 percent, whereas MRDIY fell by 0.55 percent. Nestle Malaysia advanced by 1.24 percent, Petronas Chemicals saw a decrease of 0.20 percent, and PPB Group dropped by 0.94 percent. Press Metal surged by 2.02 percent, QL Resources was up by 0.63 percent, and RHB Bank saw a marginal decrease of 0.15 percent. Sime Darby gained 0.85 percent, while SD Guthrie declined by 0.80 percent. Notably, Sunway and Telekom Malaysia both increased by 1.96 percent, Tenaga Nasional climbed by 1.18 percent, YTL Corporation spiked by 1.88 percent, and YTL Power added 0.54 percent. However, IHH Healthcare, IOI Corporation, CIMB Group, Maybank, and Public Bank remained unchanged.
Meanwhile, Wall Street offers a slightly bearish outlook. The major indices initially opened higher on Friday but soon dipped into negative territory. The NASDAQ managed to recover and end in positive territory later in the day.
The Dow Jones Industrial Average dropped by 86.04 points, equivalent to 0.20 percent, closing at 43,828.06. In contrast, the NASDAQ edged up by 23.92 points, or 0.12 percent, to finish at 19,926.72, while the S&P 500 saw a marginal decline of 0.16 points, essentially unchanged at 6,051.09.
Over the past week, the NASDAQ rose by 0.3 percent, the S&P 500 declined by 0.6 percent, and the more narrowly focused Dow fell by 1.8 percent.
The initial gains on Wall Street were partly fueled by a positive response to Broadcom's (AVGO) fourth-quarter earnings report, which surpassed expectations. Broadcom also forecasted sustained demand for its custom AI chips.
However, buying interest tapered off as traders focused on the upcoming Federal Reserve meeting. The Fed is widely anticipated to cut interest rates by an additional 25 basis points, and market participants are expected to scrutinize the accompanying statement for indications of future rate reductions.
In the commodities market, oil futures ended higher on Friday due to renewed supply concerns following the imposition of additional sanctions on Iran and Russia. West Texas Intermediate Crude oil futures for January settled at $71.29 per barrel, marking an increase of $1.27, or approximately 1.8 percent.
The material has been provided by InstaForex Company -
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