On Friday, the Malaysian stock market broke its four-day losing streak, where it had declined by roughly 50 points or 2.6%. The Kuala Lumpur Composite Index (KLCI) now hovers slightly above the 1,565-point mark, suggesting a potential for gains as we move into Monday.
The outlook for Asian markets looks optimistic, driven by a more favorable perspective on interest rates. European and U.S. markets experienced a robust upswing, setting the stage for Asian markets to open in a similar manner.
Ending modestly higher on Friday, the KLCI benefited from industrial sector gains, while sectors like plantations, telecoms, and financials showed mixed results. Specifically, the index rose by 11.18 points, or 0.72%, closing at 1,566.72 after fluctuating between 1,545.67 and 1,569.43.
Noteworthy performances among active stocks included 99 Speed Mart Retail, which increased by 0.88%, and Axiata, which saw a 0.44% rise. Celcomdigi dropped 0.27%, and CIMB Group edged down by 0.13%. Conversely, MRDIY climbed by 1.17%, and Sime Darby saw an impressive surge of 2.80%. Petronas Chemicals advanced by 1.30%, and Tenaga Nasional experienced a notable rise of 3.66%. However, IOI Corporation fell by 0.80%, and Petronas Gas declined by 1.49%.
Wall Street provided a generally positive precedent, with key indices starting and maintaining strong upward momentum throughout Friday. The Dow rose by 334.73 points, or 0.78%, closing at 43,487.83. The NASDAQ surged by 291.90 points, or 1.51%, ending at 19,630.20, while the S&P 500 gained 59.30 points, or 1.00%, to settle at 5,996.66. Over the week, the Dow leaped by 3.7%, the S&P grew by 2.9%, and the NASDAQ increased by 2.5%.
This positive trajectory in stocks is attributed to the recent drop in treasury yields, even though the yield on the 10-year note recovered to a flat close. This downturn in yields coincides with U.S. inflation data sparking renewed positive sentiment regarding interest rate prospects.
Further boosting optimism, Federal Reserve Governor Christopher Waller informed CNBC that the central bank might reduce interest rates several times within this year, contingent upon easing inflation as anticipated.
Conversely, crude oil prices witnessed a notable decline on Friday, extending the downward trend from the previous session. West Texas Intermediate for February delivery fell by $0.80, equating to a 1% drop, settling at $77.88 per barrel. Nevertheless, for the week, crude achieved a 1% rise.
In regional news, Malaysia is set to release December figures for imports, exports, and trade balance later today. On an annual basis, imports are projected to increase by 3.3%, a rise from November's 1.6%. Exports are forecasted to grow by 9.0%, up from 4.1% the previous month, while the trade surplus is expected to reach MYR16.60 billion, compared to MYR15.30 billion from the preceding month.
The material has been provided by InstaForex Company -
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