Prolonged Potential Rise for the Malaysian Stock Market
Malaysian Stock Market Moves Higher for Six Consecutive Sessions
The Malaysian stock market continued its upward trend on Tuesday, with the Kuala Lumpur Composite Index (KLCI) rising 4.66 points or 0.30 percent to finish at 1,567.90. This marks the sixth consecutive session of gains for the KLCI.
Several Malaysian stocks experienced significant movements on Tuesday. Petronas Dagangan surged 3.49 percent, IOI Corporation spiked 2.41 percent, and Sime Darby soared 2.53 percent. On the other hand, AMMB Holdings dropped 0.94 percent, IHH Healthcare stumbled 2.01 percent, and MISC tanked 1.40 percent.
Gamuda, Maxis, YTL Corporation, Petronas Gas, Public Bank, Telekom Malaysia, Kuala Lumpur Kepong, QL Resources, YTL Power, CIMB Group, and SD Guthrie all remained unchanged. Meanwhile, 99 Speed Mart Retail increased 0.84 percent, Maybank collected 0.62 percent, and Sunway rallied 1.48 percent.
However, crude oil prices slumped on Tuesday ahead of an upcoming meeting between the U.S. and Russian presidents. West Texas Intermediate crude for September delivery was down $0.88 or 1.38 percent at $63.08 per barrel.
The positive outlook for Asian markets persists, despite some mixed performances. Economic and policy factors, such as the MSCI All Country World Index reaching record highs and improved outlook for interest rates, are contributing to this optimism. Investors are also shifting funds from U.S. equities to Asian markets due to concerns about U.S. economic stability and geopolitical tensions.
However, Asian stocks have been influenced by global technology stock selloffs and cautious sentiment ahead of U.S. Fed meetings and the Jackson Hole symposium. Additionally, uncertainties such as trade tariffs and geopolitical tensions remain, which could affect market stability.
Traders believe that the data from the Labor Department's consumer price inflation report for July, which was in line with expectations, increases the chances the Federal Reserve will lower interest rates next month. The CME Group's FedWatch Tool is indicating a 94.4 percent chance the Fed will cut rates by a quarter point in September.
In other news, Press Metal strengthened 1.28 percent, while Nestle Malaysia fell 0.36 percent on Tuesday. Tenaga Nasional shed 0.59 percent, and Celcomdigi slumped 1.06 percent.
The KLCI is expected to open in the green again on Wednesday.
