FX.co ★ Malaysia Stock Market Due For Support On Friday

Ahead of the Lunar New Year break, the Malaysian stock market faced a downturn for four consecutive sessions, declining by over 35 points or 2.1 percent during this period. The Kuala Lumpur Composite Index (KLCI) is currently positioned just above the 1,550 benchmark, with potential for recovery expected on Friday.

Globally, Asian markets are projected to perform well, buoyed by anticipated gains in sectors like oil, gold, and technology. European and U.S. markets saw upward movement on Thursday, setting a positive precedent for Asian exchanges.

On Tuesday, the KLCI saw a modest dip, affected by declines in financials, telecommunications, and industrial shares. The plantations sector showed mixed results. For the day, the index dropped by 6.28 points or 0.40 percent, closing at 1,552.69, with trading fluctuating between 1,544.87 and 1,557.44.

Key market performers included 99 Speed Mart Retail, which decreased by 1.79 percent, and Axiata, down 0.45 percent. Other decliners were Celcomdigi, dropping 1.06 percent; CIMB Group, down 1.12 percent; Gamuda, shedding 0.74 percent; IHH Healthcare, declining 1.11 percent; IOI Corporation, losing 0.53 percent; and Kuala Lumpur Kepong, down 0.69 percent. Maxis plummeted 2.50 percent, and Maybank tumbled 1.16 percent. MISC eased by 0.14 percent, MRDIY fell 1.20 percent, and Nestle Malaysia dipped by 0.20 percent. In contrast, Petronas Chemicals added 0.65 percent, and companies like Sunway rallied 1.41 percent, while Tenaga Nasional saw a climb of 1.19 percent. SD Guthrie experienced a surge of 6.41 percent. Meanwhile, RHB Bank and Sime Darby remained unchanged.

Wall Street offered a positive lead as the main averages began the session strongly on Thursday and, despite some fluctuations dipping into negative territory, closed above their starting marks. The Dow rose by 168.61 points or 0.38 percent to settle at 44,882.13, while the NASDAQ increased by 49.43 points or 0.25 percent, closing at 19,681.75. The S&P 500 advanced 31.86 points or 0.53 percent to conclude at 6,071.17.

While the major averages experienced a sharp decline toward the end of the session due to President Donald Trump's declaration to enact 25 percent tariffs on imports from Canada and Mexico starting February 1, they recovered by the close, showcasing notable volatility influenced by earnings announcements throughout the day.

In the corporate sphere, companies like IBM Corp. (IBM) and Meta Platforms (META) reported quarterly outcomes surpassing expectations. Conversely, while Microsoft (MSFT) and UPS (UPS) delivered reasonable earnings, their forward-looking guidance fell short of expectations.

On the commodities front, oil futures saw a slight uptick on Thursday, possibly influenced by potential supply drops due to impending tariffs on Canadian and Mexican products, supported further by a weaker U.S. dollar. West Texas Intermediate crude oil futures for March saw an increase of $0.11 or 0.15 percent, closing at $72.73 a barrel.