Rebound Predicted For Malaysia Stock Market

(RTTNews) - The Malaysia stock market on Wednesday snapped the four-day winning streak in which it had rallied almost 40 points or 2.4 percent. The Kuala Lumpur Composite Index now sits just above the 1,710-point plateau although it figures to bounce higher again on Thursday.

The global forecast for the Asian markets is cautiously optimistic on hopes for an end to the conflict in the Middle East. The European markets were down and the U.S. bourse were up and the Asian markets figure to follow the latter lead.

The KLCI finished modestly lower on Wednesday as losses from the financial shares were offset by gains from the industrials and plantations. For the day, the index slipped 4.94 points or 0.29 percent to finish at 1,710.39 after trading between 1,705.11 and 1,720.46. Among the actives, 99 Speed Mart Retail plummeted 2.22 percent, while AMMB Holdings sank 0.78 percent, Axiata soared 2.27 percent, CIMB Group shed 0.77 percent, Gamuda rose 0.22 percent, IHH Healthcare climbed 0.80 percent, IOI Corporation added 0.47 percent, Kuala Lumpur Kepong gained 0.29 percent, Maxis tumbled 1.39 percent, Maybank declined 1.23 percent, MISC jumped 1.84 percent, MRDIY advanced 0.63 percent, Nestle Malaysia expanded 0.73 percent, Petronas Chemicals spiked 1.95 percent, Petronas Dagangan surged 3.00 percent, Petronas Gas and Tenaga Nasional both lost 0.55 percent, PPB Group skidded 0.88 percent, Press Metal expanded 1.03 percent, Public Bank dropped 0.83 percent, QL Resources fell 0.52 percent, RHB Bank collected 0.12 percent, Sime Darby stumbled 1.32 percent, SD Guthrie vaulted 1.18 percent, Sunway slumped 1.12 percent, Telekom Malaysia retreated 1.27 percent, YTL Corporation slipped 0.50 percent, YTL Power rallied 1.32 percent and Celcomdigi was unchanged.

The lead from Wall Street is solid as the major averages opened higher on Wednesday and remained comfortably in the green throughout the trading day.

The Dow jumped 340.65 points or 0.69 percent to finish at 49,490.03, while the NASDAQ rallied 397.60 points or 1.64 percent to end at a record 23,001.78 and the S&P 500 climbed 73.89 points or 1.05 percent to close at 7,137.90, also a record.

The rebound on Wall Street came in reaction to news that President Donald Trump has extended the U.S. ceasefire with Iran, although it will continue to blockade all maritime traffic entering and exiting Iranian ports.

Iran dismissed Trump's ceasefire extension as meaningless and said the Strait of Hormuz will remain closed until the U.S. blockade is lifted.

Crude oil prices soared Wednesday thanks to supply disruption concerns due to the ongoing blockade of the Strait of Hormuz. West Texas Intermediate crude for June delivery was up $3.54 or 3.95 percent at $93.21 per barrel.

Traders also continue to express optimism about the strength of corporate results, with earnings season off to a solid start.