Malaysia Shares Tipped To Return To The Downside

(RTTNews) - Ahead of the long holiday weekend for Eid-ul-Fitr, the Malaysia stock market had ended the two-day winning streak in which it had collected more than 30 points or 2 percent. The Kuala Lumpur Composite Index now sits just above the 1,720-point plateau although it's looking at a soft start as it catches up on missed sentiment.

The global forecast for the Asian markets is upbeat as tensions in the Middle East take a slight breather. The European markets were mixed and the U.S. bourses were up and the Asian markets are expected to follow the latter lead. The KLCI finished modestly lower on Thursday following losses from the financial shares, gains from the plantations and mixed performances from the industrials and telecoms. For the day, the index sank 9.10 points or 0.53 percent to finish at 1,720.71 after trading between 1,719.93 and 1,737.12. Among the actives, 99 Speed Mart Retail fell 0.57 percent, while AMMB Holdings lost 0.59 percent, Axiata added 0.43 percent, Celcomdigi stumbled 1.92 percent, CIMB Group sank 1.01 percent, Gamuda retreated 1.43 percent, IHH Healthcare tanked 3.83 percent, IOI Corporation advanced 0.74 percent, Kuala Lumpur Kepong rallied 1.32 percent, Maxis skidded 1.08 percent, Maybank slumped 1.19 percent, MISC perked 0.12 percent, MRDIY vaulted 1.22 percent, Nestle Malaysia slipped 0.50 percent, Petronas Chemicals skyrocketed 11.84 percent, Petronas Dagangan and QL Resources both eased 0.27 percent, Petronas Gas plunged 6.25 percent, PPB Group surged 5.07 percent, Press Metal spiked 1.44 percent, Public Bank declined 1.22 percent, RHB Bank collected 0.35 percent, Sime Darby soared 1.69 percent, SD Guthrie jumped 1.37 percent, Sunway tumbled 1.64 percent, Telekom Malaysia dropped 1.07 percent, Tenaga Nasional gained 0.42 percent, YTL Corporation plummeted 6.78 percent and YTL Power shed 0.68 percent.

The lead from Wall Street is broadly positive as the major averages opened higher on Monday and remained firmly in the green throughout the trading day.

The Dow surged 631.00 points or 1.38 percent to finish at 46,208.47, while the NASDAQ spiked 299.15 points or 1.38 percent to close at 21,946.76 and the S&P 500 rallied 74.52 points or 1.15 percent to end at 6,581.00.

The early rally on Wall Street came reaction to President Donald Trump backing down from his threats to "obliterate" Iran's power plants unless they fully reopen the Strait of Hormuz.

However, buying interest waned somewhat as the day progressed, as Iran's state-run media said the country's foreign ministry has denied negotiating with the U.S.

Crude oil prices plummeted on Monday after Trump's announcement that he ordered the U.S. forces to pause any planned attacks against Iran's power plants and energy infrastructure. West Texas Intermediate crude for May delivery was down $10.21 or 10.39 percent at $88.02 per barrel.