FX.co ★ Malaysia Bourse May Be Stuck In Neutral On Monday

The Malaysian stock market has trended upwards in recent consecutive sessions, gaining nearly 15 points or 1 percent overall. Now, the Kuala Lumpur Composite Index hovers around the 1,550-point plateau, with some fears that this upward momentum may run out of steam by Monday.

Globally, financial experts urge caution in Asian markets this week as the world awaits the outcome of the FOMC meeting. With mixed results from the European markets and a decrease in the U.S. markets, Asia is expected to fall somewhere in-between.

On Friday, the KLCI closed somewhat higher, owing to gains from financial and telecom shares and an uneven show from the plantations. During the day, the index increased by 9.08 percent or 0.59 percent. The highest point recorded was 1,552.83.

In terms of active performers, Axiata decreased by 0.34 percent, while Celcomdigi climbed 2.80 percent, CIMB Group rose 2.56 percent, and both Genting and Genting Malaysia declined marginally. Other movers include IHH Healthcare and Nestle Malaysia, which both recorded losses of 0.33 percent, while IOI Corporation and Kuala Lumpur Kepong saw minor increases. Telekom Malaysia was a standout with an impressive surge of 8.51 percent.

Concerning U.S. markets, Friday was a negative day as major averages remained low. These results renewed concerns about interest rate outlooks ahead of the Fed's upcoming monetary policy meeting. Although interest rates are expected to remain as is, investors will scrutinize the meeting's notes for guidance on future rates. Speculation has been clouded by recent inflation figures that are higher than anticipated, thus dampening optimism for an interest rate cut by June.

In related economic news, according to the U.S. Labor Department, import prices in February matched predictions while export prices outperformed expectations. Additionally, a minor increase in U.S. industrial production was noted for the same month.

Meanwhile, oil prices declined from multi-month highs due to profit-taking following strong gains. West Texas Intermediate Crude oil futures for April fell by $0.22 to $81.04 per barrel.

Closer to home in Malaysia, financial reports indicating February's import, export, and trade balance figures are scheduled for release later today. Previously in January, imports increased by 18.8 percent year-on-year, exports rose by 8.7 percent, and the trade surplus amounted to MYR10.10 billion.