Win Streak May Continue For Malaysia Stock Market

(RTTNews) - The Malaysia stock market has finished higher in four straight sessions, advancing more than 35 points or 2.1 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,755-point plateau and it's expected to open to the upside again on Thursday.

The global forecast for the Asian markets is positive on hopes for an end to hostilities in the Middle East. The European and U.S. markets were sharply higher and the Asian bourses are expected to follow that lead.

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

For the day, the index added 9.44 points or 0.54 percent to finish at 1,756.87 after trading between 1,746.80 and 1,760.30. Among the actives, 99 Speed Mart Retail tumbled 2.87 percent, while AMMB Holdings vaulted 1.43 percent, Axiata improved 0.83 percent, Celcomdigi retreated 2.58 percent, CIMB Group gained 0.51 percent, Gamuda soared 4.75 percent, IHH Healthcare rose 0.23 percent, IOI Corporation contracted 1.14 percent, Kuala Lumpur Kepong slipped 0.47 percent, Maxis rallied 1.67 percent, Maybank perked 0.18 percent, MISC spiked 1.88 percent, Nestle Malaysia dropped 0.79 percent, Petronas Chemicals slumped 0.84 percent, Petronas Dagangan shed 0.59 percent, Petronas Gas increased 0.89 percent, PPB Group was down 0.36 percent, Press Metal sank 0.68 percent, Public Bank collected 0.84 percent, RHB Bank advanced 1.10 percent, Sime Darby accelerated 1.84 percent, SD Guthrie fell 0.48 percent, Sunway added 0.56 percent, Sunway Healthcare lost 0.53 percent, Telekom Malaysia declined 1.41 percent, YTL Corporation skyrocketed 10.53 percent, YTL Power surged 5.84 percent and MRDIY and Tenaga Nasional were unchanged.

The lead from Wall Street is strong as the major averages opened higher on Wednesday and continued to pick up steam as the day progressed, ending at session highs.

The Dow spiked 612.34 points or 1.24 percent to finish at 49,910.59, while the NASDAQ rallied 512.82 points or 2.02 percent to end at 25,838.94 and the S&P 500 jumped 105.90 points or 1.46 percent to close at 7,365.12.

The rally on Wall Street came amid optimism about an end to the conflict in the Middle East after reports said the White House believes it's getting close to an agreement with Iran on a one-page memorandum of understanding.

Adding to the optimism about a peace deal, President Donald Trump said the U.S. would pause its efforts to escort ships through the Strait of Hormuz to see whether or not the agreement can be finalized and signed.

On the U.S. economic front, payroll processor ADP released a report showing private sector employment in the U.S. jumped more than expected in April.

Crude oil prices went into freefall after Trump indicated the U.S. and Iran may reach a deal soon. West Texas Intermediate crude for June delivery was down $7.83 or 7.66 percent at $94.44 per barrel.

Closer to home, the central bank in Malaysia will wrap up its monetary policy meeting today and announce its decision on interest rates; the central bank is expected to keep its benchmark lending rate steady at 2.75 percent.