FX.co ★ Malaysia Stock Market May Extend Thursday's Losses

The Malaysia stock market's six-day winning streak, during which it gained nearly 40 points or 2.5%, was interrupted on Thursday. The Kuala Lumpur Composite Index is now hovering just below the 1,570-point level, and further losses may be expected on Friday.

Global forecasts suggest volatility in Asia's markets due to uncertainties about the future of interest rates. The European markets showed a mixed performance, while U.S. markets experienced a decline. Asian markets are expected to echo this downtrend.

On Thursday, the KLCI (Kuala Lumpur Composite Index) saw a minor drop, spurred by a mixed performance of finance shares, plantation stocks and telecoms.

For the day, the index saw a decline of 2.23 points or 0.14%, ending at 1,569.25 after fluctuating between 1,569.03 and 1,574.45.

On the active list, Axiata had a 0.37% decrease, whereas Celcomdigi experienced a 0.24% growth, and CIMB Group saw a 0.15% rise. However, Genting dropped 1.75% and Genting Malaysia went down by 1.13% while IHH Healthcare saw an increase of 0.81%. Meanwhile, movement for other companies ranged from IOI Corporation's 0.49% decline to YTL Corporation's 2.21% surge. Notably, Sime Darby Plantations, Maxis, MISC, MRDIY, PPB Group, Tenaga Nasional and AMMB Holdings saw no change.

Wall Street's negative performance also indicates potential headwinds for international markets. Major indices opened lower on Thursday and remained in the red for the entire session, reacting to disappointing earnings news from Meta Platforms (META) and tech giant IBM Corp. (IBM).

In other economic news, a Commerce Department report highlighted that U.S. economic growth in the 2024 first quarter was less than projected. Additionally, the personal consumption expenditures price index exceeded expectations. This worrisome economic data is indicative of a lower likelihood of the Federal Reserve implementing an interest rate cut in the near future.

Despite showing slower than forecasted U.S. first-quarter GDP growth, crude oil futures managed to rebound from recent losses on Thursday. As a result, West Texas Intermediate Crude oil futures for June ended higher by $0.76 or around 0.92%, closing at $83.57 a barrel.