Malaysia Stock Market May Check Resistance At 1,500 Points

(RTTNews) - The Malaysia stock market on Wednesday wrote a finish to the four-day losing streak in which it had stumbled almost 25 points or 1.6 percent. The Kuala Lumpur Composite Index new rests just above the 1,490-point plateau and it may add to its winnings on Thursday.

The global forecast for the Asian markets is upbeat on bargain hunting and easing concerns over the outlook for interest rates. The European markets were mixed and the U.S. bourses were sharply higher and the Asian markets figure to split the difference.

The KLCI finished slightly higher on Wednesday following gains from the glove makers and mixed performances from the financials, telecoms and plantations.

For the day, the index perked 3.08 points or 0.21 percent to finish at 1,491.35 after trading between 1,483.29 and 1,492.19. Volume was 2.365 billion shares worth 1.617 billion ringgit. There were 477 decliners and 348 gainers.

Among the actives, Axiata shed 0.34 percent, while CIMB Group skidded 1.10 percent, Dialog Group tumbled 1.78 percent, Digi.com declined 1.67 percent, Genting Malaysia and Maybank both gained 0.34 percent, Hartalega Holdings surged 4.43 percent, IHH Healthcare strengthened 0.81 percent, INARI dropped 0.37 percent, IOI Corporation slumped 0.48 percent, Kuala Lumpur Kepong fell 0.18 percent, Maxis perked 0.27 percent, MISC advanced 0.57 percent, Petronas Chemicals and Petronas Dagangan both spiked 2.97 percent, PPB Group jumped 0.83 percent, Press Metal soared 3.96 percent, Public Bank sank 0.43 percent, RHB Capital collected 0.52 percent, Sime Darby rallied 2.03 percent, Sime Darby Plantations and Petronas Gas both rose 0.23 percent, Telekom Malaysia was up 0.17 percent, Tenaga Nasional accelerated 2.10 percent, Top Glove climbed 0.62 percent and Genting, MRDIY and Hong Leong Bank were unchanged.

The lead from Wall Street is broadly positive as the major averages opened slightly higher on Wednesday but accelerated as the day progressed, ending near session highs.

The Dow surged 435.98 points or 1.40 percent to finish at 31,581.28, while the NASDAQ rallied 246.99 points or 2.14 percent to end at 11,791.90 and the S&P 500 jumped 71.68 points or 1.83 percent to close at 3,979.87.

The rally on Wall Street came as traders looked to pick up stocks at reduced levels following recent weakness, which dragged the major averages down to their lowest levels in over a month; traders may now feel that interest rate concerns have been priced into the markets.

The rebound also came amid a pullback by treasury yields, with the yield on the benchmark ten-year note receding after reaching a nearly three-month high on Tuesday.

Stocks saw further upside following the release of the Federal Reserve's Beige Book, which said economic activity in the U.S. has been essentially unchanged since early July. Also, the Commerce Department said the U.S. trade deficit narrowed significantly in July.

Crude oil prices fell sharply on Wednesday on concerns about the outlook for energy demand amid rising fears of a global recession. West Texas Intermediate Crude oil futures for October ended lower by $4.94 or 5.7 percent at $81.94 a barrel, the lowest settlement since January 11.