FX.co ★ Renewed Selling Pressure Likely For Malaysia Stock Market

The Malaysia stock market saw an upward movement on Thursday, recovering after a brief pause in its two-day winning streak during which it gained nearly 6 points, translating to a 0.4% rise. The Kuala Lumpur Composite Index (KLCI) now hovers just above the 1,640 mark, but it's anticipated that a downward trend might resume on Friday.

Globally, the forecast for Asian markets appears unfavorable due to waning optimism concerning interest rate prospects. Both European and U.S. markets closed with slight declines, which is likely to influence Asian markets similarly.

The KLCI's performance on Thursday was positive, buoyed by gains in plantation stocks, industrial sector companies, and financial shares. Specifically, the index climbed by 6.03 points or 0.37%, closing at 1,640.94. It fluctuated between 1,638.67 and 1,646.14 during the day's trading.

Key active stocks included Celcomdigi, up by 1.70%; CIMB Group, increasing by 0.62%; and Sime Darby, which saw a notable rise of 1.63%. Other significant moves were seen in YTL Corporation, surging by 2.46%, and YTL Power, up by 1.37%. Meanwhile, Nestle Malaysia dropped by 1.24%, and Tenaga Nasional fell by 0.28%. Companies like Axiata, PPB Group, and Hong Leong Bank remained unchanged.

Wall Street's guidance suggests a mild consolidation, as the major averages experienced slight declines on Thursday. The Dow Jones dipped by 57.88 points, or 0.14%, closing at 42,454.12. The NASDAQ and S&P 500 also saw slight decreases of 0.05% and 0.21%, respectively.

The subtle downturn in the U.S. markets came amidst the release of a Labor Department report indicating that consumer prices increased more than anticipated in September, casting doubt on the Federal Reserve's potential continuation of aggressive interest rate cuts in the near future. Additionally, disappointing data on initial jobless claims further dampened sentiment.

Oil prices experienced a sharp increase on Thursday due to concerns over rising tensions in the Middle East, outweighing uncertainties regarding demand. West Texas Intermediate Crude oil futures for November saw a rise of $2.61, about 3.56%, culminating at $75.85 per barrel.

Domestically, Malaysia will release August data on industrial production later today, following a 5.3% year-on-year uptick reported in July.