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Malaysia Stock Market May Test Resistance At 1,650 Points

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The Malaysia stock market has finished higher in two of three trading days since the end of the four-day losing streak in which it had stumbled almost 50 points or 3.2 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,645-point plateau and it's tipped to open in the green again on Tuesday.

The global forecast for the Asian markets is optimistic thanks to Brexit and stimulus news, although profit taking may set in as the day progresses. The European and U.S. markets were up and the Asian bourses figure to open in similar fashion.

The KLCI finished slightly higher on Monday as gains from the financials were offset by weakness from the rubber glove makers and a mixed picture from the plantations.

For the day, the index rose 2.73 points 0.17 percent to finish at 1,643.90 after trading between 1,639.92 and 1,655.96. Volume was 8.71 billion shares worth 3.903 billion ringgit. There were 701 gainers and 549 decliners.

Among the actives, Supermax plummeted 6.17 percent, while Top Glove plunged 3.54 percent, MISC surged 3.38 percent, Sime Darby soared 2.69 percent, CIMB Group spiked 2.69 percent, Genting accelerated 2.02 percent, Genting Malaysia rallied 1.88 percent, Maybank jumped 1.18 percent, Tenaga Nasional tumbled 1.12 percent, Public Bank collected 1.07 percent, IHH Healthcare climbed 1.06 percent, Hartalega Holdings skidded 0.95 percent, Telekom Malaysia gathered 0.75 percent, RHB Capital perked 0.73 percent, IOI Corporation advanced 0.68 percent, Sime Darby Plantations sank 0.58 percent, Maxis added 0.40 percent, Petronas Chemicals fell 0.13 percent, PPB Group eased 0.11 percent and Petronas Dagangan, Dialog Group, Axiata, Kuala Lumpur Kepong, Press Metal and Digi.com all were unchanged.

The lead from Wall Street is solid as stocks opened higher on Monday and remained in the green throughout the session, sending the major averages to fresh record closing highs.

The Dow jumped 204.10 points or 0.68 percent to finish at 30,403.97, while the NASDAQ climbed 94.69 points or 0.74 percent to end at 12,899.42 and the S&P 500 gained 32.30 points or 0.87 percent to close at 3,735.36.

The strength on Wall Street came in reaction to news that President Donald Trump finally signed a $2.3 trillion government spending bill that includes approximately $900 billion in coronavirus relief funds.

Trading activity remained subdued, however, with many traders still away from their desks ahead of the New Year's Day holiday on Friday.

Crude oil prices drifted lower on Monday as rising coronavirus cases and tighter restrictions on travel in several places raised concerns about outlook for energy demand. West Texas Intermediate Crude oil futures for February ended down $0.61 or 1.3 percent at $47.62 a barrel.

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