The Malaysian stock market has demonstrated positive growth over three consecutive sessions, featuring an increase of over 20 points. This upturn, which equates to a 1.4 percent hike, has positioned the Kuala Lumpur Composite Index just below the 1,600-point marker. Further growth is anticipated on Tuesday, fueled by an encouraging global forecast for Asian markets based on newly revived optimism regarding interest rate predictions.
European and U.S. markets closed on a high, with Asian markets expected to react in a similar vein. Monday saw the KLCI finishing marginally higher, driven by progress in financial shares, along with mixed results from the telecommunication and plantation sectors. By day's end, the index rose by 7.80 points or 0.49 percent, reaching a closing level of 1,597.39.
Notable players included Axiata, which dipped by 1.04 percent, and Celcomdigi and Tenaga Nasional, both gaining 0.49 percent. CIMB Group made a significant leap of 1.50 percent, while Genting and Genting Malaysia experienced minor drops. Other entities that saw action include IOI Corporation, Kuala Lumpur Kepong, Maxis, Maybank, MISC, MRDIY, PPB Group, Press Metal, Public Bank, QL Resources, RHB Capital, Sime Darby, Sime Darby Plantations, Telekom Malaysia, YTL Corporation, YTL Power, Petronas Chemicals, Hong Leong Bank and AMMB Holdings.
Correlating with Wall Street's positive attitude, shares rose significantly on Monday, and the positive trend persisted throughout the trading day. The Dow observed an increase of 176.59 points, marking a 0.46 percent growth, leading to a closing value of 38,852.27. The NASDAQ displayed more momentum, rallying by 192.92 points, giving it a growth of 1.19 percent and a closing figure of 16,349.25. The S&P 500 enhanced by 52.95 points, amounting to a 1.03 percent climb, with a closing mark of 5,180.74.
These gains extended the positive momentum from the two preceding sessions, indicating renewed optimism about the outlook for interest rates. The Federal Reserve Chair, Jerome Powell, made somewhat dovish remarks following weaker than expected job growth data for April. These factors have quelled temporary worries about potential rate hikes by the Federal Reserve. This adjustment in investor attitude suggests increasing confidence in a forthcoming rate cut. It has been estimated that the chances of lower rates by September are now at 83.5 percent, as per CME Group's FedWatch Tool.
Crude oil futures also saw a modest rise on Monday due to Saudi Arabia's decision to increase its selling price for the European and Asian markets. Consequently, West Texas Intermediate Crude oil futures for June experienced a $0.37 boost, a 0.47 percent increase, to end the day at $78.48 a barrel.