The Malaysian stock market ended its two-day upward trend on Friday, during which it had modestly gained over 3 points, or 0.2%. Currently, the Kuala Lumpur Composite Index (KLCI) is positioned slightly above the 1,590 mark, but projections suggest a potential rebound on Monday.
Globally, Asian markets are exhibiting cautious optimism, driven by improved interest rate forecasts. While European markets experienced declines, U.S. stock exchanges displayed growth, and analysts anticipate that Asian markets will mirror the latter’s positive trajectory.
On Friday, the KLCI experienced a minor drop, primarily impacted by losses in financial stocks and a mixed performance from telecommunications and plantation sectors. The index decreased by 8.68 points, equivalent to a 0.54% decline, concluding at 1,591.41 after reaching a peak of 1,606.28 during the session.
In particular stocks: Axiata fell by 2.90%, Celcomdigi by 1.94%, and CIMB Group by 1.12%. Conversely, Genting Malaysia saw a slight increase of 0.47%, while IHH Healthcare dropped 1.40%, and IOI Corporation saw a decline of 1.05%. Kuala Lumpur Kepong increased by 0.37%, Maxis by 0.56%, and MRDIY by 0.55%. However, Maybank fell by 0.99%, MISC by 0.14%, and Petronas Chemicals by 1.06%, with Petronas Dagangan experiencing a significant 4.23% tumble. PPB Group rallied, rising by 2.19%. Press Metal dropped 1.67%, Public Bank decreased by 0.67%, and RHB Bank retreated 1.56%, among others. Notably, Genting, Nestle Malaysia, and Tenaga Nasional showed no change.
In the U.S., Wall Street closed on a positive note after initially opening lower. The Dow Jones surged by 498.06 points or 1.18% to close at 42,840.26, while the NASDAQ rose by 199.80 points or 1.03%, ending at 19,572.60. The S&P 500 also saw a gain of 63.77 points or 1.09%, finishing at 5,930.85. Despite this rebound, the week saw the Dow fall 2.3%, the S&P 500 decline by 2.0%, and the NASDAQ drop by 1.8%.
This Wall Street rally came in response to the Commerce Department’s report on personal consumption expenditures (PCE), which revealed slower-than-expected growth. This data, being the Federal Reserve's preferred measure of consumer price inflation, alleviated concerns and encouraged traders to invest in stocks at more appealing prices following a mid-week downturn.
Additionally, oil futures rose on Friday as the dollar retreated from two-year highs, following softer PCE readings that mitigated worries about rate hikes. West Texas Intermediate Crude futures edged up $0.08 or approximately 0.1%, to settle at $69.46 per barrel, despite witnessing a weekly decrease of 2.5%.
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