Malaysia Stock Market Set To Extend Friday's Gains

(RTTNews) - The Malaysia stock market on Friday halted the two-day losing streak in which it had slumped more than 25 points or 1.8 percent. The Kuala Lumpur Composite Index now rests just above the 1,435-point plateau and it may see additional support on Monday.

The global forecast for the oversold Asian markets is broadly positive, with the oil, technology and financial sectors expected to lead the way higher. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The KLCI finished modestly higher on Friday following gains from the financial shares and telecoms, while the industrials and glove makers were mixed.

For the day, the index rose 5.65 points or 0.39 percent to finish at 1,436.70 after trading between 1,431.30 and 1,440.73. Volume was 2.469 billion shares worth 1.479 billion ringgit. There were 519 gainers and 345 decliners.

Among the actives, Axiata and Tenaga Nasional both improved 0.37 percent, while Dialog Group rose 0.48 percent, Digi.com and IHH Healthcare both climbed 0.94 percent, Genting jumped 1.10 percent, Hartalega Holdings rallied 1.46 percent, INARI soared 2.77 percent, IOI Corporation gained 0.52 percent, Kuala Lumpur Kepong tumbled 2.01 percent, Maybank collected 0.47 percent, Maxis was up 0.31 percent, MISC slumped 0.86 percent, MRDIY spiked 2.60 percent, Petronas Chemicals strengthened 1.09 percent, PPB Group retreated 0.92 percent, Press Metal surged 3.02 percent, Public Bank advanced 0.68 percent, RHB Capital added 0.53 percent, Sime Darby stumbled 1.86 percent, Sime Darby Plantations declined 1.63 percent, Telekom Malaysia accelerated 1.98 percent and Top Glove, Genting Malaysia and CIMB Group were unchanged.

The lead from Wall Street is upbeat as the major averages opened sharply higher on Friday and remained that way throughout the trading day.

The Dow surged 823.28 points or 2.68 percent to finish at 31,500.68, while the NASDAQ rallied 375.42 points or 3.34 percent to end at 11,607.62 and the S&P 500 jumped 116.01 points or 3.06 percent to close at 3,911.74.

For the holiday-shortened week, the NASDAQ soared by 7.5 percent, while the S&P 500 and the Dow spiked by 6.4 percent and 5.4 percent, respectively.

Traders continue to express concerns about inflation, interest rates and a potential recession but may feel to sell-off earlier this month was overdone.

On the U.S. economic front, the Commerce Department unexpectedly reported a significant rebound in new home sales in May. Also, the University of Michigan said consumer sentiment in the U.S. tumbled more than expected in June.

Crude oil prices rose sharply on Friday on optimism for continued high demand for energy and tight supply. West Texas Intermediate Crude oil futures for August ended higher by $3.35 or 3.2 percent at $107.62 a barrel. WTI futures shed 1.8 percent in the week.