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

The Malaysian stock market has been on an upward trend for two consecutive sessions and accumulated nearly 15 points or 0.9 percent in total. The Kuala Lumpur Composite Index is currently barely under the 1,590-point mark, suggesting that this positive trend might continue on Monday.

The global financial prognosis for Asian markets is favorable due to an improved perspective on interest rates. Stock markets in European and U.S. observed solid gains, and it is anticipated that Asian markets will follow suit.

On Friday, the KLCI ended on a modest high note carried by financials and telecommunication gains, which counteracted the profit pulling from plantation stocks. The index earned 9.29 points or 0.59 percent, closing at 1,589.59 after trading between 1,581.59 and 1,590.56.

Axiata, a major player, saw a 0.35 percent increase, while both Celcomdigi and IOI Corporation experienced drops of 0.49 percent. CIMB Group and QL Resources both saw an increase of 0.15 percent, while Genting and Genting Malaysia saw rises of 0.22 percent and 0.38 percent respectively. Other significant price movements included increases by MISC and MRDIY, decreases by IHH Healthcare, Kuala Lumpur Kepong, Maxis, and RHB Capital, and significant surges from Telekom Malaysia, YTL Corporation, and YTL Power.

Wall Street's influence was positive as major stock market averages opened significantly higher on Friday and remained that way throughout the day. On the week, the S&P 500 grew 0.6 percent, the Dow Jones Industrial Average increased 1.1 percent, and the NASDAQ Composite Index ascended by 1.4 percent.

This rise was buoyed by employment data released by the Labor Department showing less growth than expected in April. This sparked expectancy around interest rates in the wake of the Federal Reserve's recent monetary policy meeting. Additionally, a report from the Institute for Supply Management indicated an unexpected contraction in U.S. service sector activity in April.

On a cautionary note, oil prices fell on Friday due to concerns about global oil demand outlook, recording the largest weekly decline in about three months. West Texas Intermediate Crude's futures for June ended down by $0.84 or 1.06 percent, finishing at $78.11 a barrel.