Malaysian Stock Market Recap: Optimism for Trade Deals Boosts Market Performance
Stock Market in Malaysia May Secure Further Gains on Thursday
The Malaysian stock market ended a two-day losing streak on Wednesday, with the Kuala Lumpur Composite Index (KLCI) finishing at 1,529.79, an increase of 0.68 percent. This positive trend was observed across various sectors, as optimism for trade deals spurred expectations of further agreements as the Aug. 1 deadline nears.
Key Performers
Axiata skidded 1.17 percent, Celcomdigi increased 1.06 percent, and CIMB Group spiked 1.83 percent. Meanwhile, 99 Speed Mart Retail skyrocketed 3.08 percent, while AMMB Holdings rallied 1.58 percent.
On the other hand, Petronas Dagangan slumped 1.32 percent, Petronas Gas rose 0.68 percent, and PPB Group fell 0.32 percent. YTL Corporation added 0.83 percent, YTL Power surged 1.70 percent, and SD Guthrie was unchanged.
Sector Performance
The KLCI saw support on Wednesday from the financials, telecoms, plantations, and industrials sectors. Sime Darby gathered 0.61 percent, Sunway was up 0.42 percent, Telekom Malaysia perked 0.60 percent, and Tenaga Nasional advanced 1.16 percent. Gamuda gained 0.77 percent, IHH Healthcare picked up 0.30 percent, and IOI Corporation soared 2.13 percent.
Crude Oil Prices and Global Markets
Crude oil prices dipped slightly on Wednesday, with West Texas Intermediate crude for September delivery easing $0.06 to $65.25 per barrel. Meanwhile, the Dow, NASDAQ, and S&P 500 all ended at record highs on Wednesday. The Dow surged 507.85 points or 1.14 percent, the NASDAQ jumped 127.33 points or 0.61 percent, and the S&P 500 gained 49.29 points or 0.78 percent.
Trade Deals and Geopolitical Uncertainty
Trade deals have been announced between the United States, Japan, and the Philippines. However, uncertainty persists in U.S. trade talks ahead of the deadline. Despite this, the market has shown resilience to trade policy shocks, particularly after the initial sell-off caused by the Liberation Day tariff announcements in April.
Looking Ahead
Given the backdrop of improving trade sentiment and selective optimism in key sectors, Asian markets are likely to open cautiously higher on Thursday, barring any overnight negative surprises from major global markets or geopolitics. The forecast for Thursday suggests a positive outlook for the Malaysian stock market, with tech, AI, and select consumer sectors expected to outperform. However, any signs of slowing economic data or renewed trade tensions could quickly dampen sentiment.
- The positive performance of the Malaysian stock market might encourage some investors to invest more in the stock-market, especially in sectors like tech, AI, and select consumer sectors that are expected to outperform.
- Despite uncertainty in U.S. trade talks, the resilience shown by the market to trade policy shocks indicates that investors may continue to focus on finance opportunities, such as investing in companies in the telecoms, plantations, and industrials sectors that have seen support in the KLCI.
