On Monday, the Malaysian stock market reversed its brief reprieve from a five-day losing streak, in which it lost over 15 points, or 1%. Currently, the Kuala Lumpur Composite Index (KLCI) hovers just above the 1,605 mark, and projections suggest it will maintain its position in that range on Tuesday.
The outlook for Asian markets is generally mixed, with a tilt toward the positive, bolstered by promising performances anticipated from the technology sector. European markets saw declines, while U.S. markets presented a mixed picture, suggesting Asian markets might follow suit. On Monday, the KLCI declined slightly, with losses noted in industrials and financial sectors, while the performance of plantations and telecommunications was mixed. The index dipped by 1.90 points or 0.12%, concluding the day at 1,606.85, having fluctuated between 1,603.21 and 1,609.43.
Key movements included Axiata and Sime Darby rising by 2.53%, Celcomdigi gaining 1.13%, while CIMB Group fell by 0.37% and Genting dropped 0.55%. IHH Healthcare was down 0.28%, whereas Kuala Lumpur Kepong climbed 1.21% and Maxis increased 0.85%. Conversely, Maybank slipped 0.20%, MISC inched down 0.13%, MRDIY rose 0.55%, Nestle Malaysia declined 0.78%, Petronas Chemicals edged up 0.20%, while PPB Group plunged 2.70%. Press Metal and Public Bank dropped by 0.40% and 0.66% respectively, QL Resources fell 1.05%, and other shares such as RHB Bank, Telekom Malaysia, YTL Corporation, YTL Power experienced minor declines. Companies like SD Guthrie, Sunway, Tenaga Nasional, Genting Malaysia, IOI Corporation, and Hong Leong Bank remained unchanged.
From Wall Street, there is a guarded optimism as major indices opened and closed on mixed notes on Monday. The Dow Jones Industrial Average declined by 110.58 points or 0.25%, ending at 43,717.48. In contrast, the NASDAQ saw a significant jump of 247.17 points or 1.24%, closing at a record 20,173.89, and the S&P 500 rose by 22.99 points or 0.38% to close at 6,074.08.
The prevalent strength in the U.S. market stemmed from optimism regarding future interest rate adjustments, ahead of the Federal Reserve's monetary policy decision expected later today. The anticipation is for the Fed to continue cutting interest rates, with the CME Group's FedWatch Tool indicating a 99.1% likelihood of a 25 basis points reduction.
The NASDAQ's surge was underpinned by robust performance from semiconductor stocks, as evidenced by the Philadelphia Semiconductor Index's 2.1% increase. Additionally, networking stocks maintained their upward momentum, driving the NYSE Arca Networking Index to a new record high with a 2.0% climb.
However, investor enthusiasm was tempered by concerns that persistent inflation might slow the pace at which the Fed reduces rates next year.
In economic news, the Federal Reserve Bank of New York reported a notable decline in its assessment of regional manufacturing activity in December. Crude oil prices also fell on Monday due to concerns over demand following weak economic data from China and tariff threats. West Texas Intermediate Crude oil futures for January settled at $70.71 a barrel, down $0.58.
The material has been provided by InstaForex Company -
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