FX.co ★ Mild Upside Seen For Malaysia Stock Market

With Malaysia Day approaching, the Malaysian stock market exhibited upward momentum over the last couple of trading days, accumulating nearly 15 points or a 0.9 percent increase. The Kuala Lumpur Composite Index (KLCI) now hovers slightly above the 1,650-point mark and is anticipated to edge higher on Tuesday.

The global outlook for Asian markets indicates minimal movement, primarily due to anticipation of the Federal Reserve's upcoming monetary policy decision this week. European and U.S. markets showed mixed, negligible movements, suggesting that Asian markets might follow a similar pattern.

On Friday, the KLCI concluded with modest gains, buoyed by financial stocks, and predominantly positive performances from the plantation and telecommunications sectors.

Specifically, the index climbed 13.84 points, or 0.84 percent, to close at 1,652.15, within a trading range of 1,638.44 to 1,652.25.

Reviewing individual stock performances: Axiata rose by 0.81 percent, while Celcomdigi dipped by 0.80 percent. CIMB Group surged 2.90 percent, Genting advanced by 1.45 percent, and Genting Malaysia upped by 1.24 percent. IHH Healthcare saw a 1.95 percent increase, IOI Corporation gained 0.26 percent, and Kuala Lumpur Kepong dropped 0.29 percent. Maxis slid 0.26 percent, MISC jumped 2.16 percent, and MRDIY fell by 1.01 percent. Petronas Chemicals were up 0.92 percent, PPB Group improved by 1.87 percent, and Press Metal climbed 3.69 percent. Public Bank collected 1.08 percent, QL Resources edged down 0.15 percent, and RHB Capital increased by 0.96 percent. Sime Darby went up by 0.87 percent, SD Guthrie gained 0.89 percent, and Sunway accelerated 3.02 percent. Telekom Malaysia added 0.90 percent, Tenaga Nasional increased by 0.68 percent, YTL Corporation surged 3.24 percent, and YTL Power soared 3.39 percent. Maybank and Hong Leong Bank remained unchanged.

Wall Street's performance on Monday provided limited guidance, as the major averages opened mixed, largely stayed neutral, and closed with minimal changes.

The Dow Jones Industrial Average advanced by 228.30 points or 0.55 percent to conclude at an all-time high of 41,622.08. Meanwhile, the NASDAQ declined by 91.85 points or 0.52 percent, closing at 17,592.13, and the S&P 500 edged up by 7.07 points or 0.13 percent, ending at 5,633.09.

This lackluster performance was due to investors cautiously awaiting the Federal Reserve's monetary policy announcement, scheduled for Wednesday. The market broadly expects a rate cut, though there is some debate regarding the magnitude. The CME Group's FedWatch Tool currently indicates a 65.0 percent probability of a half-point rate cut and a 35.0 percent probability of a quarter-point rate cut.

On the economic front, the Federal Reserve Bank of New York reported that regional manufacturing experienced growth in September, marking the first increase in nearly a year.

In the commodities market, oil prices rallied on Monday due to concerns over tight supply and the influence of a weaker dollar. West Texas Intermediate crude oil futures for October rose by $1.44, settling at $70.09 per barrel.