FX.co ★ Continued Support Predicted For Malaysia Shares

The Malaysian stock market has experienced growth for two consecutive sessions, amassing nearly 10 points or a 0.7% increase. Consequently, the Kuala Lumpur Composite Index is now just below the 1,600 mark, with prospects of further gains anticipated on Tuesday.

Optimism regarding the global economic outlook is fostering a positive forecast for Asian markets, despite the limiting factor of subdued oil prices. The European and U.S. markets have risen, likely encouraging Asian exchanges to follow suit.

On Monday, the KLCI closed modestly higher, thanks to advances in financial stocks, although performances were mixed across sectors such as plantations, industrials, and telecommunications. For the day, the index rose 7.67 points or 0.48%, closing at 1,597.45, with a trading range between 1,588.46 and 1,609.29.

In terms of active stocks: Axiata increased by 0.43%, while Celcomdigi decreased by 0.28%. CIMB Group surged by 1.95%, Genting gained 1.32%, whereas Genting Malaysia dropped 1.41%. IHH Healthcare saw a substantial decline of 2.64%, IOI Corporation fell by 0.52%, and Kuala Lumpur Kepong inched up by 0.28%. Maxis improved by 1.42%, Maybank climbed 0.98%, and MISC experienced a slight dip of 0.13%. MRDIY and Hong Leong Financial both rose by 0.54%, while Nestle Malaysia dramatically fell by 2.56%. Petronas Chemicals and Petronas Dagangan decreased by 2.44% and 1.69%, respectively. PPB Group experienced a significant drop of 4.55%, Press Metal slid by 0.43%, Public Bank advanced by 1.60%, and RHB Bank rallied with a 1.69% increase. Sime Darby fell by 1.32%, SD Guthrie dropped 1.85%, while Sunway advanced by 0.60%, and Telekom Malaysia declined by 0.31%. Lastly, Tenaga Nasional gained 0.29%, YTL Corporation surged by 4.52%, and YTL Power witnessed a 5.52% increase.

Wall Street provided a positive indication for markets, with major indices opening higher on Monday and maintaining upward momentum. The Dow Jones Industrial Average soared by 440.6 points or 0.99% to a final close of 44,736.57. Similarly, the NASDAQ Composite increased by 51.19 points or 0.48% to finish at 20,220.36, and the S&P 500 rose by 18.03 points or 0.30%, closing at 5,987.37.

The market gains observed last week received a further boost as investors reacted positively to the announcement of President-elect Donald Trump's plan to nominate billionaire hedge fund manager Scott Bessent as Treasury Secretary. Bessent is viewed favorably by the equity markets and advocates for deficit reduction, as well as suggesting a gradual implementation of Trump's proposed tariff increases to mitigate inflation impacts.

However, the enthusiasm for buying waned as the session progressed, with traders appearing cautious about making larger moves ahead of several significant economic reports expected in the coming days.

Oil prices faced a significant decline on Monday, influenced by reports suggesting that Israel and Hezbollah are likely to reach a ceasefire agreement soon. West Texas Intermediate Crude oil futures for January fell by $2.30 or 3.2%, settling at $68.94 per barrel.