Malaysia Stock Market May Extend Tuesday's Gains

(RTTNews) - The Malaysia stock market has alternated between positive and negative finishes through the last five trading days since the end of the five-day losing streak in which it had tumbled almost 65 points or 4.6 percent. The Kuala Lumpur Composite Index now rests just above the 1,405-point plateau and it may add to its winnings on Wednesday.

The global forecast for the Asian markets is upbeat on easing concerns over the health of the financial sector. The European and U.S. markets were firmly higher and the Asian markets are expected to open in similar fashion.

The KLCI finished modestly higher on Tuesday following gains from the financials, weakness from the plantations and a mixed picture from the telecoms.

For the day, the index rose 4.74 points or 0.34 percent to finish at 1,406.55 after trading between 1,403.96 and 1,412.81.

Among the actives, Axiata rallied 0.99 percent, while CIMB Group climbed 0.78 percent, Dialog Group dropped 0.88 percent, Digi.com surged 2.65 percent, Genting soared 1.13 percent, Genting Malaysia lost 0.78 percent, IHH Healthcare advanced 0.68 percent, INARI gathered 0.43 percent, IOI Corporation retreated 1.04 percent, Kuala Lumpur Kepong sank 0.86 percent, Maybank collected 0.72 percent, Maxis improved 0.51 percent, MISC and Hong Leong Financial both rose 0.56 percent, MRDIY added 0.62 percent, Petronas Chemicals tumbled 2.57 percent, PPB Group gained 0.60 percent, Press Metal fell 0.42 percent, Public Bank jumped 1.01 percent, RHB Capital perked 0.36 percent, Sime Darby increased 0.47 percent, Telekom Malaysia dipped 0.41 percent and Tenaga Nasional, Sime Darby Plantations, AMMB Holdings and QL Resources were unchanged.

The lead from Wall Street is broadly positive as the major averages opened higher on Tuesday and remained solidly in the green throughout the session.

The Dow surged 316.02 points or 0.98 percent to finish at 32,560.60, while the NASDAQ spiked 184.57 points or 1.58 percent to end at 11,860.11 and the S&P 500 climbed 51.30 points or 1.30 percent to end at 4,002.87.

The extended rally on Wall Street partly reflected easing concerns about turmoil in the financial sector following recent steps taken to rescue distressed banks in the U.S. and Europe.

Positive sentiment was also generated in reaction to remarks by Treasury Secretary Janet Yellen, who said the government is prepared to once again take action to protect bank depositors if smaller lenders are threatened.

Traders also looked ahead to the Federal Reserve's highly anticipated monetary policy announcement later today. While the recent banking turmoil led to some speculation the Fed may leave interest rates unchanged, CME Group's FedWatch Tool is currently indicating an 86.4 percent chance of a 25-basis point rate hike.

Crude oil prices climbed higher Tuesday, gaining for a second straight session amid improving risk sentiment thanks to the coordinated efforts by major central banks to rescue troubled U.S. and European lenders. West Texas Intermediate Crude oil futures for April ended higher by $1.69 or 2.5 percent at $69.33 a barrel.