Malaysia Bourse Tipped To Return To The Upside

(RTTNews) - Ahead of Monday's holiday for Wesak Day, the Malaysia stock market had moved higher in two of three trading days since ending the two-day slide in which it had slipped six points or 0.4 percent. The Kuala Lumpur Composite Index now sits just above the 1,545-point plateau and it's likely to see additional support again on Tuesday.

The global forecast for the Asian markets is upbeat on optimism over easing tariff concerns. The European and U.S. markets were solidly higher and the Asian bourses are expected to open in similar fashion.

The KLCI finished slightly higher on Friday following gains from the plantations and mixed performances from the financial shares and telecoms.

For the day, the index rose 3.76 points or 0.24 percent to finish at 1,546.50 after trading between 1,542.74 and 1,547.74.

Among the actives, 99 Speed Mart Retail rose 0.45 percent, while Axiata and YTL Corporation both gained 0.47 percent, Celcomdigi added 0.52 percent, IOI Corporation spiked 1.68 percent, Kuala Lumpur Kepong advanced 0.71 percent, Maxis rallied 1.34 percent, Maybank perked 0.10 percent, MISC increased 0.54 percent, Nestle Malaysia stumbled 2.33 percent, Petronas Chemicals jumped 1.45 percent, Petronas Dagangan soared 2.83 percent, PPB Group strengthened 1.00 percent, Press Metal surged 2.85 percent, Public Bank fell 0.22 percent, Sime Darby climbed 0.96 percent, SD Guthrie improved 0.66 percent, Sunway slumped 1.05 percent, Telekom Malaysia lost 0.29 percent, YTL Power dropped 0.83 percent and QL Resources, RHB Bank, CIMB Group, Gamuda, IHH Healthcare, MRDIY, Tenaga Nasional and Hong Leong Bank were unchanged.

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

The Dow surged 1,160.72 points or 2.81 percent to finish at 42,410.10, while the NASDAQ soared 779.43 points or 4.35 percent to close at 18,708.34 and the S&P 500 rallied 184.28 points or 3.26 percent to end at 5,844.19.

The rally on Wall Street came following news of a U.S.-China trade deal that drastically reduces the massive tariffs on each other's goods.

The White House said the agreement calls for the U.S. and China to each lower tariffs by 115 percent while retaining an additional 10 percent tariff. The U.S. will retain tariffs imposed in response to the fentanyl national emergency, resulting in an effective tariff rate on Chinese goods of 30 percent.

The White House said the 34 percent reciprocal tariffs on U.S. and Chinese goods will be suspended for 90 days beginning May 14. Both nations also agreed to establish a mechanism to continue important discussions about trade and economics, the White House said.

Crude oil showed another strong move to the upside on Monday, riding optimism about the outlook for demand after the U.S. and China reached their trade deal. West Texas Intermediate crude for June delivery jumped $0.93 or 1.5 percent to $61.95 a barrel.