The Malaysia stock market made a positive turn on Thursday, following a slight dip after a two-day winning streak that saw gains of over 5 points or 0.3 percent. The Kuala Lumpur Composite Index (KLCI) now hovers just above the 1,610 mark, although further consolidation is expected on Friday.
The overall outlook for Asian markets points towards consolidation, driven primarily by profit-taking after recent upticks. Both European and U.S. markets saw declines, which is expected to influence Asian markets similarly.
On Thursday, the KLCI posted moderate gains, supported by advances in financial shares, plantation stocks, and telecoms. The index rose by 7.88 points, or 0.49 percent, to close at 1,611.11, after fluctuating between 1,604.38 and 1,611.57.
Notable movements among active stocks included a 0.35 percent rise in Axiata, while Celcomdigi and Press Metal fell by 0.74 percent. CIMB Group increased by 0.15 percent, whereas Genting slipped by 0.21 percent. Genting Malaysia saw a 0.74 percent rise, IHH Healthcare declined by 0.32 percent, and IOI Corporation gained 0.25 percent. Other significant performers included Kuala Lumpur Kepong, up by 0.27 percent, Maxis, which climbed 0.56 percent, and Maybank, which saw a 0.40 percent increase. MRDIY jumped 1.12 percent, Petronas Chemicals soared 1.32 percent, and PPB Group spiked 1.18 percent. Public Bank rose 0.96 percent, QL Resources advanced 0.46 percent, while RHB Capital gathered 0.18 percent. Sime Darby strengthened by 0.70 percent, Sime Darby Plantations rose by 0.23 percent, and Tenaga Nasional surged 2.10 percent. Both YTL Corporation and YTL Power rallied by 0.55 percent and 0.78 percent, respectively, while MISC and Telekom Malaysia remained unchanged.
The U.S. markets experienced a soft close, with major indexes spending most of Thursday in positive territory before a late wave of profit-taking resulted in minor declines. The Dow lost 38.62 points or 0.10 percent to finish at 39,869.38. The NASDAQ dropped 44.07 points or 0.26 percent to close at 16,698.32, and the S&P 500 dipped 11.05 points or 0.21 percent to end at 5,297.10.
Early strength on Wall Street was fueled by optimism about interest rates, buoyed by tamer-than-expected consumer price inflation data. However, buying interest tapered off as traders moved to lock in recent gains.
In economic news, the U.S. Labor Department reported a decline in initial jobless claims last week. Additionally, U.S. import prices surged more than anticipated in April, while industrial production remained flat.
Oil prices continued their upward trend on Thursday, due to recent data indicating a larger-than-expected reduction in U.S. crude inventories. Anticipation of a potential interest rate cut in September also contributed to the rise. West Texas Intermediate crude oil futures for June increased by $0.60, closing at $79.23 per barrel.
In Malaysia, focus shifts to the release of Q1 gross domestic product (GDP) and current account figures later today. In the previous quarter, the GDP grew by 3.0 percent year-over-year, and the current account surplus stood at NYR0.25 billion.