Malaysia Stock Market May See Additional Support On Thursday

The Malaysia stock market bounced higher again on Wednesday, one session after it had ended the seven-day winning streak in which it had spiked more than 70 points or 5.3 percent. The Kuala Lumpur Composite Index now rests just above the 1,450-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is upbeat on optimism for reopening economies and the possibility of further stimulus. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The KLCI finished sharply higher on Wednesday following gains from the plantation stocks and industrials, although the financials were soft.

For the day, the index gained 14.97 points or 1.04 percent to finish at 1,451.73 after trading between 1,446.42 and 1,458.24. Volume was 7.199 billion shares worth 4.777 billion ringgit. There were 582 gainers and 406 decliners.

Among the actives, Hartalega Holdings and Top Glove both skyrocketed 8.80 percent, while Petronas Dagangan surged 6.02 percent, Dialog Group soared 3.06 percent, Genting Malaysia plunged 2.62 percent, Petronas Chemicals spiked 2.54 percent, MISC accelerated 2.48 percent, IOI Corporation jumped 2.27 percent, Genting tumbled 2.11 percent, Sime Darby climbed 1.96 percent, Maxis skidded 1.83 percent, Sime Darby Plantations gathered 1.63 percent, CIMB Group dropped 1.44 percent, RHB Capital sank 0.84 percent, Kuala Lumpur Kepong perked 0.74 percent, Digi.com advanced 0.67 percent, AMMB Holdings dropped 0.67 percent, Press Metal added 0.53 percent, Malaysia Airports Holdings and Maybank both shed 0.40 percent, IHH Healthcare gained 0.37 percent, Public Bank lost 0.13 percent, PPB Group rose 0.12 percent and Tenaga Nasional and Axiata were unchanged.

The lead from Wall Street is firm as stocks moved mostly higher on Wednesday and ended solidly in the green to hit multi-month closing highs.

The Dow surged 553.16 points or 2.21 percent to finish at 25,548.27, while the NASDAQ added 72.14 points or 0.77 percent to end at 9,412.36 and the S&P 500 gained 44.36 points or 1.48 percent to close at 3,036.13.

The strength on Wall Street came as traders continued to express optimism about a quick economic recovery as the country reopens following the coronavirus lockdown.

Adding to the positive sentiment was news that the European Commission plan to launch a massive recovery fund for the euro region to help limit the damage inflicted by the coronavirus pandemic.

Crude oil prices drifted lower on Wednesday as worries about energy demand outlook resurfaced due to rising tensions between the U.S. and China. West Texas Intermediate crude oil futures for July sank $1.54 or 4.5 percent at $32.81 a barrel.