(RTTNews) - The Malaysia stock market ticked higher again on Wednesday, one session after halting the two-day winning streak in which it had collected almost 35 points or 2.2 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,600-point plateau and it may extend its gains on Thursday.
The global forecast for the Asian markets is positive, with surging crude oil prices and strength among financials expected to boost the oversold markets. The European and U.S. markets were up sharply and the Asian markets are expected to open in similar fashion.
The KLCI finished slightly higher on Wednesday as gains from the plantations were sapped by weakness from the glove makers and a mixed picture from the financials and telecoms.
For the day, the index rose 1.66 points or 0.10 percent to finish at 1,598.10 after trading between 1,592.62 and 1,606.38. Volume was 3.231 billion shares worth 3.231 billion ringgit. There were 607 decliners and 406 gainers.
Among the actives, Axiata retreated 1.05 percent, while CIMB Group plummeted 4.91 percent, Dialog Group tanked 2.18 percent, Digi.com advanced 0.73 percent, Genting tumbled 1.30 percent, Genting Malaysia lost 0.33 percent, Hartalega Holdings plunged 3.29 percent, IHH Healthcare eased 0.15 percent, INARI fell 0.32 percent, IOI Corporation rose 0.22 percent, Kuala Lumpur Kepong soared 5.22 percent, Maybank collected 0.45 percent, Maxis added 0.50 percent, MISC gained 0.41 percent, Petronas Chemicals jumped 1.77 percent, PPB Group rallied 1.22 percent, Press Metal spiked 4.12 percent, Public Bank dipped 0.23 percent, Sime Darby sank 0.87 percent, Sime Darby Plantations surged 6.31 percent, Telekom Malaysia climbed 0.79 percent, Tenaga Nasional declined 0.99 percent, Top Glove slumped 0.97 percent and MRDIY, RHB Capital and Hong Leong Financial were unchanged.
The lead from Wall Street is upbeat as the major averages opened higher on Wednesday and accelerated as the session progressed, ending near daily highs.
The Dow surged 596.40 points or 1.79 percent to finish at 33,891.35, while the NASDAQ soared 219.56 points or 1.62 percent to end at 13,752.02 and the S&P 500 jumped 80.28 points or 1.86 percent to close at 4,386.54.
The rally on Wall Street came on surging crude oil prices and a rebound by treasury yields.
Also, Federal Reserve Chair Jerome Powell told the House Financial Services Committee the Fed still believes it will be appropriate to raise interest rates later this month, citing inflation well above 2 percent and a strong labor market. The likely increase in interest rates comes even though Powell acknowledged that the Russia-Ukraine conflict has introduced significant uncertainty for the U.S. economic outlook.
On the U.S. economic front, payroll processor ADP said U.S. private sector employment jumped much more than expected in February.
Crude oil prices climbed higher on Wednesday, extending gains amid concerns about global crude supplies due to the ongoing Russia-Ukraine conflict and data showing a drop in U.S. crude inventories. West Texas Intermediate Crude oil futures for April ended higher by $7.19 or 7 percent at $110.60, the highest settlement since May 2011.
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