FX.co ★ Malaysia Bourse May Test Resistance At 1,600 Points

The Malaysian stock market is on a progressive trend, adding almost 15 points or 1 percent in the past two successive trading sessions. The Kuala Lumpur Composite Index is projected to open higher again on Tuesday, given the current status that lies just over 1,580 points.

Analysts' forecasts project Asian markets to remain flat or potentially rise slightly ahead of Wednesday's Federal Reserve Open Market Committee (FOMC) policy announcement. While European markets were slightly bearish, U.S markets showed a moderate bullish trend. It's expected that Asian markets will strike a balance between these two extremes.

On Monday, the KLCI ended with minor gains, thanks to the contributions from the plantation and telecom sectors. However, these gains were offset by a weaker performance from the financial sector. At the close of trading, the index had gained 7.50 points or 0.48 percent, ending at 1,582.66.

The day's market fluctuations experienced highs and lows from significant players. AMMB Holdings and Nestle Malaysia saw a decrease while Axiata, Genting and IHH Healthcare recorded considerable gains. There were no changes recorded for Celcomdigi, CIMB Group, PPB Group, Press Metal, Tenaga Nasional and Petronas Gas.

U.S Wall Street's slight bullish trend also suggested a mild advantage. The Dow, NASDAQ and the S&P 500 all recorded slight gains due to the momentum coming off a positive reaction from previous upbeat tech earnings. However, the market presented a subdued tone as investors anticipate the Federal Reserve's announcement on their monetary policy on Wednesday.

Interest rates are expected to remain unchanged according to popular opinion, but the Federal Reserve's accompanying statement and Chair Jerome Powell's subsequent press conference are poised to throw more light on the future of rates.

In other news, Oil futures saw a drop on Monday due to concerns about growth, oil demand outlook, and the increasing likelihood of the Federal Reserve delaying interest rate cuts. West Texas Intermediate Crude oil futures for June decreased by $1.22 or 1.45 percent, ending at $82.63 a barrel.