On Friday, the Malaysia stock market managed to break its two-day losing streak, during which it had shed nearly 30 points or 1.9%. As a result, the Kuala Lumpur Composite Index (KLCI) now stands slightly above the 1,600 mark, although indications suggest that it may face renewed downward pressure on Monday.
The outlook for Asian markets is largely pessimistic, following robust U.S. employment data that has clouded prospects regarding interest rate trends. Both European and U.S. markets concluded with notable declines, and it's anticipated that Asian exchanges might open in a similar downward trend.
On Friday, the KLCI edged slightly higher, aided by gains in the financial sector. However, this was offset by declines in plantation stocks and mixed performances from the telecommunications sector. The index advanced modestly by 1.60 points or 0.10%, closing at 1,602.41, after fluctuating between 1,599.71 and 1,605.74 throughout the day.
In terms of specific stock performances, 99 Speed Mart Retail fell by 0.86%, while Axiata saw a decline of 1.75%. Conversely, Celcomdigi inched up by 0.27%, and CIMB Group gained 0.86%. Other notable movements included Gamuda and Maybank, each rising by 0.20%; IHH Healthcare, which increased by 0.28%; and Maxis, which rallied by 1.11%. IOI Corporation decreased by 0.52%, and Kuala Lumpur Kepong was down by 1.22%. Petronas Chemicals climbed by 0.42%, while Petronas Dagangan tumbled by 3.05%. Meanwhile, YTL Corporation soared by 1.22%, and YTL Power rose by 1.19%. Various other stocks, including Press Metal, Public Bank, Telekom Malaysia, MRDIY, and Nestle Malaysia, remained unchanged.
Over in the U.S., Wall Street painted a gloomy picture, with major indices opening sharply lower on Friday and maintaining that trajectory throughout the day. The Dow Jones Industrial Average plunged 696.75 points or 1.63% to 41,938.45. Similarly, the NASDAQ fell by 317.27 points or 1.63% to 19,161.63, and the S&P 500 decreased by 91.21 points or 1.54%, settling at 5,827.04.
The bearish sentiment was attributed to strong non-farm payroll figures, sparking apprehensions that the Federal Reserve might retain current interest rates or decelerate the pace of rate cuts. Despite this, the robust labor market data bolsters the Federal Reserve's strategy to gradually decrease interest rates over the coming year.
Meanwhile, oil prices surged significantly on Friday, influenced by the Biden Administration's decision to impose additional sanctions on Russian oil exports. February futures for West Texas Intermediate Crude soared, closing $2.65 higher—equivalent to a 3.6% increase—at $76.57 per barrel, marking the highest settlement in three months.
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