Rebound Anticipated For Malaysia Stock Market

(RTTNews) - The Malaysia stock market on Wednesday snapped the two-day winning streak in which it had collected almost 15 points or 0.9 percent. The Kuala Lumpur Composite Index now sits just above the 1,620-point plateau although it figures to bounce higher again on Thursday.

The global forecast for the Asian markets is upbeat on bargain hunting and positive data. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The KLCI finished slightly higher on Wednesday following mixed performances from the financial shares, telecoms, industrials and plantations.

For the day, the index dipped 1.95 points or 0.12 percent to finish at 1,621.55 after trading between 1,614.30 and 1,623.16. Among the actives, 99 Speed Mart Retail plunged 1.93 percent, while AMMB Holdings and Telekom Malaysia both stumbled 1.37 percent, Axiata climbed 1.17 percent, Celcomdigi gained 0.55 percent, CIMB Group sank 0.66 percent, Gamuda added 0.59 percent, IOI Corporation advanced 0.99 percent, Kuala Lumpur Kepong rose 0.38 percent, Maxis increased 0.77 percent, Maybank fell 0.30 percent, MRDIY plummeted 3.64 percent, Nestle Malaysia surged 2.65 percent, Petronas Chemicals retreated 1.06 percent, Petronas Dagangan improved 0.88 percent, Petronas Gas was up 0.32 percent, PPB Group rallied 1.04 percent, Press Metal slumped 0.79 percent, Public Bank jumped 1.88 percent, QL Resources tanked 1.42 percent, RHB Bank dropped 0.72 percent, Sime Darby declined 0.98 percent, SD Guthrie lost 0.38 percent, Sunway tumbled 1.10 percent, Tenaga Nasional skidded 0.75 percent, YTL Corporation was up 0.40 percent, YTL Power shed 0.51 percent and IHH Healthcare and MISC were unchanged.

The lead from Wall Street is solid as the major averages opened barely on Wednesday in the red but quickly accelerated into the green and stayed there for the balance of the day.

The Dow jumped 225.76 points or 0.48 percent to finish at 47,311.00, while the NASDAQ rallied 151.16 points or 0.65 percent to end at 23,499.80 and the S&P 500 gained 24.74 points or 0.37 percent to close at 6,796.29.

The strength for most of the day came as some traders looked to pick up stocks at reduced levels following the steep drop on Tuesday, which reflected concerns about valuations.

Positive sentiment may also have been generated by some upbeat U.S. economic data, including a report from payroll processor ADP showing private sector employment in the U.S. rebounded by more than expected in October.

Also, the Institute for Supply Management released a report showing U.S. service sector activity returned to expansion in October.

Crude oil prices fell on Wednesday as concerns about excess supply and lower demand compelled investors to refrain from big moves. West Texas Intermediate crude for December delivery was down $0.92 or 1.52 percent at $59.64 per barrel.

Closer to home, the central bank in Malaysia will wrap up its monetary policy meeting later today and then announce its decision on interest rates; the bank is widely expected to keep its benchmark lending rate unchanged at 2.75 percent.