FX.co ★ Malaysia Shares Expected To Find Renewed Support

On Wednesday, the Malaysia stock market ended a two-day winning streak during which it accumulated over 5 points, equating to a 0.3 percent gain. The Kuala Lumpur Composite Index (KLCI) now stands slightly above the 1,600-point level, with predictions suggesting a rebound on Thursday.

The positive outlook for interest rates has buoyed the global forecast for Asian markets, following gains in European and U.S. markets. This optimistic sentiment is expected to extend to Asian bourses.

The KLCI closed marginally lower due to declines in financial and plantation stocks, while telecoms showed mixed results. The index dropped 2.65 points or 0.17 percent, landing at 1,603.23 after reaching a high of 1,607.64 during the day.

Among the notable performers:

- Axiata gained 0.35 percent.

- CIMB Group decreased by 0.15 percent.

- Genting increased by 0.21 percent.

- Genting Malaysia fell by 0.37 percent.

- IHH Healthcare dipped by 0.64 percent.

- IOI Corporation declined by 0.73 percent.

- Maxis tumbled by 1.64 percent.

- MISC rallied by 0.73 percent.

- MRDIY advanced by 1.13 percent.

- Petronas Chemicals plunged by 2.30 percent.

- PPB Group dropped 1.92 percent.

- Press Metal added 0.56 percent.

- Public Bank decreased by 0.48 percent.

- QL Resources advanced 0.61 percent.

- RHB Capital shed 0.36 percent.

- Sime Darby Plantations plummeted by 2.42 percent.

- Telekom Malaysia increased 0.16 percent.

- Tenaga Nasional lost 0.32 percent.

- YTL Corporation surged 3.13 percent.

- YTL Power spiked by 1.98 percent.

- Sime Darby, Maybank, Kuala Lumpur Kepong, Celcomdigi, AMMB Holdings, and Nestle Malaysia remained unchanged.

Wall Street provided a strong lead, with major averages opening higher and maintaining gains throughout the session. The Dow Jones Industrial Average surged by 349.89 points or 0.88 percent to close at 39,908.00. Meanwhile, the NASDAQ Composite spiked 231.21 points or 1.40 percent to finish at 16,742.29, and the S&P 500 jumped 61.47 points or 1.17 percent to end at 5,308.15.

The rally on Wall Street was bolstered by a Labor Department report indicating that U.S. consumer prices rose slightly less than expected in April. This followed the previous day’s producer price index data, which was hotter than anticipated, contributing to renewed optimism about the interest rate outlook.

In other economic news, the Commerce Department reported that U.S. retail sales remained flat in April, contrary to forecasts predicting a 0.4 percent increase.

Crude oil prices rose on Wednesday, supported by soft inflation data and a report indicating a larger-than-expected decline in U.S. crude inventories last week. West Texas Intermediate crude oil futures for June settled up by $0.61 or 0.78 percent, reaching $78.63 per barrel.