FX.co ★ Malaysia Stock Market Tipped To Open In The Green On Tuesday

Prior to the Monday holiday for Eid-al-Adha, the Malaysian stock market once again turned downward on Friday, just a day after breaking a three-day losing streak that saw a decline of nearly 10 points or 0.6 percent. The Kuala Lumpur Composite Index (KLCI) now sits just below the 1,610-point level, with expectations of renewed support on Tuesday.

The global outlook for Asian markets is generally positive, driven by optimism regarding interest rate trends. While European markets had mixed results, U.S. exchanges closed higher, indicating that Asian markets are likely to follow the latter's positive lead.

On Friday, the KLCI finished slightly lower as losses in the plantations and industrial sectors were balanced by gains in financial and telecom shares.

For the day, the index dipped by 2.85 points or 0.18 percent to close at 1,607.32, after trading between 1,604.48 and 1,611.90.

Among the active stocks, Press Metal Aluminum plummeted by 3.05 percent, Dialog Group plunged 2.72 percent, Petronas Gas declined 1.89 percent, Sime Darby fell 1.56 percent, Inari lost 1.54 percent, MISC retreated 1.42 percent, Kuala Lumpur Kepong decreased 1.25 percent, Maxis stumbled 1.09 percent, while Celcomdigi rallied 1.09 percent. PPB Group slumped 0.96 percent, Nestle Malaysia climbed 0.73 percent, Axiata advanced 0.72 percent, CIMB Group edged up 0.58 percent, IOI Corporation dropped 0.53 percent, Tenaga Nasional sank 0.42 percent, Genting Malaysia shed 0.39 percent, IHH Healthcare lost 0.32 percent, Telekom Malaysia added 0.31 percent, AMMB Holdings fell 0.21 percent, Maybank rose 0.20 percent, QL Resources slid 0.16 percent, Petronas Chemicals eased 0.15 percent, and Hong Leong Financial, Public Bank, Mr. DIY, SD Guthrie, RHB Bank, Genting, and Petronas Dagangan remained unchanged.

Wall Street set an optimistic tone, as major averages initially opened lower on Monday but quickly rebounded and finished solidly in the green.

The Dow Jones Industrial Average jumped 188.94 points or 0.49 percent to finish at 38,778.10, while the NASDAQ surged 168.14 points or 0.95 percent to close at 17,857.02, and the S&P 500 gained 41.63 points or 0.77 percent to end at 5,473.23.

The buying interest on Wall Street was driven by positive sentiment from last week's tamer-than-expected inflation data.

Despite Federal Reserve officials forecasting just one interest rate cut this year following last Wednesday's monetary policy meeting, traders remain hopeful that these predictions will prove overly conservative if inflation continues to slow in the coming months.

In U.S. economic news, the Federal Reserve Bank of New York released a report this morning showing that New York manufacturing activity contracted at a markedly slower rate in June.

Oil prices reached a fresh six-week high on Monday due to positive expectations for energy demand. West Texas Intermediate crude oil futures for July settled higher by $1.88 or approximately 1.25 percent at $80.33 per barrel, marking the highest settlement since April 29.