Potential Delay for Malaysia's Stock Market due to Rally
Market Recap: Kuala Lumpur Composite Index (KLCI) Climbs Amid Global Uncertainties
The Kuala Lumpur Composite Index (KLCI) inched higher on Monday, rising 6.26 points or 0.40%, as Asian markets showed a cautiously positive outlook amid global uncertainties and local earnings reports.
The KLCI currently stands above the 1,560-point plateau, with key players such as IOI Corporation retreating 1.06%, SD Guthrie rallying 1.24%, AMMB Holdings rising 0.19%, Maxis tumbling 1.71%, and 99 Speed Mart Retail dropping 0.83%. However, other notable gains were seen in companies like Petronas Dagangan, which gained 0.26%, YTL Power, which advanced 0.95%, Maybank, which collected 0.42%, and Petronas Gas, which added 0.43%.
Trading on Wall Street was choppy on Monday due to traders' reluctance to make significant moves ahead of the release of several closely watched economic reports. As a result, the NASDAQ sank 64.62 points or 0.30%, while the S&P 500 fell 16.00 points or 0.25%, and the Dow dropped 200.52 points or 0.45%.
The U.S. Dollar has shown mixed to slightly weaker movement against Asian currencies recently but has strengthened somewhat in response to inflation and Fed outlook signals, affecting FX and equity sentiment in Asia. The Labor Department's report on consumer price inflation in the month of July is likely to be in focus today, with the CME Group's FedWatch Tool indicating an 86.5% chance the Federal Reserve will lower interest rates by a quarter point next month.
The current outlook for Asian markets, including the KLCI, is cautiously positive amid an upward trend supported by hopes for geopolitical peace and strong corporate earnings, tempered by careful monitoring of U.S. inflation data and Federal Reserve policy signals. This inflation backdrop and Fed policy outlook are creating volatility and risk-awareness in Asian markets, with investors advised to be nimble and monitor developments closely, including key macroeconomic data and earnings reports.
Other significant movers in the Malaysian market on Monday included Press Metal, which increased 0.74%, RHB Bank, which advanced 0.95%, Tenaga Nasional, which slumped 1.01%, Public Bank, which spiked 1.62%, Gamuda, which improved 0.90%, Sunway, which fell 0.21%, MISC, which perked 0.13%, and Celcomdigi, which stumbled 2.32%. Meanwhile, CIMB Group and Nestle Malaysia both jumped 1.17%.
In the broader Asia-Pacific region, markets like Hong Kong’s Hang Seng and major Chinese indices have gained moderately, supported by export strength and upbeat corporate results, whereas some markets such as Australia have shown sector-specific weakness. The KLCI and Malaysia’s markets are trading flat to modestly up, reflecting a cautious but generally positive stance amid global uncertainties and local earnings reports.
[1] Asian markets rise as hopes for Russia-Ukraine truce boost sentiment
[2] U.S. stocks drop as traders wait for inflation data
[3] Malaysia stocks rise for fifth straight session
[4] Tencent leads Asian stocks higher on hopes for Russia-Ukraine truce
Read also:
- Adjusted logistics being influenced by the recent manufacturing procedures
- VinFast Accelerates Globally, Riding On Vingroup's Technological and Financial Backing
- Interview with Jimmy Mesta, Co-Founder and CTO of RAD Security, on the Real-Time Defense Company
- Investment of $10M established between BlockDAG and Borussia Dortmund
