In recent days, the Malaysian stock market has experienced a downturn, declining for four consecutive sessions and losing nearly 50 points, equivalent to a 2.6% decrease. The Kuala Lumpur Composite Index (KLCI) now hovers just above the 1,555 mark, facing the possibility of further declines on Friday.
The forecast for Asian markets remains cautious, influenced by anticipated drops in oil and technology stocks. While European markets closed higher, U.S. markets experienced declines, setting a trend that Asian markets are likely to follow.
On Thursday, the KLCI closed moderately lower, driven by losses in plantation and telecommunications sectors, while financial stocks showed mixed results. The index fell 6.58 points, or 0.42%, ending the day at its low of 1,555.54 after reaching a high of 1,576.57.
Individually, 99 Speed Mart Retail fell 1.30%, Axiata retracted 1.75%, and Celcomdigi saw a slight increase of 0.27%. CIMB Group rose by 1.78%, while Gamuda experienced a sharp drop of 4.27%. IHH Healthcare edged up 0.14%, IOI Corporation dipped 0.27%, and Kuala Lumpur Kepong decreased 0.29%. Maxis and MISC recorded changes of -0.56% and +0.85%, respectively. MRDIY gained 0.59%, though Nestle Malaysia slid 0.54%. Petronas Chemicals and Petronas Dagangan moved -0.43% and +2.02%, respectively. PPB Group, Press Metal, Public Bank, RHB Bank, and Sime Darby experienced minor shifts. SD Guthrie decreased by 0.21%, while Sunway declined by 2.15%. Telekom Malaysia, Tenaga Nasional, YTL Corporation, and YTL Power faced slight to moderate decreases, with QL Resources, Maybank, and Hong Leong Financial remaining stable.
Wall Street's influence is negative as the principal indices, after a brief rise, ended Thursday trading lower. The Dow dropped 68.42 points (0.16%) to settle at 43,153.13, NASDAQ declined 172.95 points (0.89%) to 19,338.29, and the S&P 500 slipped 12.57 points (0.21%) to close at 5,937.34.
Volatility in Wall Street trading emerged as investors reassessed the short-term market outlook post-Wednesday's strong rally, marking the largest daily gains in over two months. Market participants are also deliberating various U.S. economic indicators, including jobless claims, retail sales, and import price reports. These figures largely met expectations, maintaining hope for a potential interest rate cut by the Federal Reserve within the year's first half.
Oil prices saw a significant drop on Thursday following an agreement between Israel and Hamas to enact a ceasefire, brokered under the approval of the UN Security Council. February's West Texas Intermediate Crude futures fell $1.36, or 1.7%, settling at $78.68 per barrel.
Domestically, Malaysia is poised to release preliminary figures for Q4 gross domestic product (GDP) later in the day, having previously recorded a 5.3% year-on-year growth in the preceding quarter.
The material has been provided by InstaForex Company -
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