Home Markets Malaysia Stock Market: Resistance Expected At 1,600 Points

Malaysia Stock Market: Resistance Expected At 1,600 Points

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(RTTNews) – The Malaysia stock market on Friday snapped the two-day slide in which it had fallen more than 25 points or 1.6 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,595-point plateau although it figures to open under pressure on Monday.

The global forecast for the Asian markets is uninspired thanks to a continued surge in Covid-19 cases worldwide. The European markets were up and the U.S. bourses were down and the Asian markets are tipped to follow the latter lead.

The KLCI finished modestly higher on Friday following gains from the rubber glove makers and mixed performances from the financials and plantations.

For the day, the index gained 10.07 points or 0.64 percent to finish at 1,593.75 after trading between 1,579.49 and 1,599.49. Volume was 9.008 billion shares worth 5.156 billion ringgit. There were 690 gainers and 504 decliners.

Among the actives, Top Glove surged 5.04 percent, while Sime Darby soared 3.45 percent, Petronas Gas spiked 2.70 percent, PPB Group plunged 2.16 percent, Hartalega Holdings accelerated 2.13 percent, Digi.com rallied 1.70 percent, Axiata tanked 1.50 percent, MISC jumped 1.45 percent, Genting Malaysia climbed 1.20 percent, Maxis advanced 1.19 percent, Press Metal perked 1.09 percent, Genting skidded 0.98 percent, AMMB Holdings gathered 0.92 percent, RHB Capital sank 0.79 percent, Maybank collected 0.74 percent, IOI Corporation added 0.66 percent, Sime Darby Plantations dropped 0.58 percent, Malaysia Airports Holdings shed 0.55 percent, Tenaga Nasional lost 0.53 percent, Petronas Chemicals gained 0.44 percent, Public Bank fell 0.44 percent, IHH Healthcare rose 0.37 percent, Dialog Group was up 0.28 percent, Kuala Lumpur Kepong eased 0.17 percent and Petronas Dagangan and CIMB Group were unchanged.

The lead from Wall Street is soft as stocks opened lower on Friday and largely remained in the red, finishing firmly in negative territory.

The Dow shed 219.75 points or 0.75 percent to finish at 29,263.48, while the NASDAQ sank 49.74 points or 0.42 percent to end at 11,854.976 and the S&P 500 fell 24.33 points or 0.68 percent to close at 3,557.54. For the week, the Dow fell 0.7 percent, the NASDAQ rose 0.2 percent and the S&P fell 0.8 percent.

The weakness on Wall Street reflected concerns about the near-term economic outlook amid a continued spike in new coronavirus cases in the U.S. Data showed nearly 188,000 new coronavirus cases on Thursday, while the daily death toll topped 2,000 for the first time.

The continued surge in new cases, hospitalizations and deaths in the U.S. has raised concerns new restrictions and lockdowns will dampen the economy recovery. While there continues to be upbeat news on the vaccine front, traders seem worried about an economic downturn leading up to the widespread distribution of a vaccine.

Adding to the economic uncertainty, Treasury Secretary Steven Mnuchin announced a decision to allow five of the Federal Reserve’s nine emergency lending programs to expire at the end of the year.

Crude oil prices moved higher on Friday, lifted by optimism about a likely pick-up in energy demand once the Covid-19 vaccines get the nod from drug regulators. West Texas Intermediate Crude oil futures for December settled at $42.15 a barrel, gaining $0.41 or 1 percent on the expiration day. New front-month contract January WTI futures were up by $0.52 or 1.2 percent at $42.42 a barrel.