Malaysia’s Stock Rally Faces Uncertainty Amid Global Weakness

(RTTNews) – Malaysia’s stock market extended its gains for a second consecutive session, adding roughly eight points, or 0.5 %, to the Kuala Lumpur Composite Index (KLCI). The index now sits just above the 1,630‑point level but may remain range‑bound on Friday.

Outlook for Asian equities is subdued, with technology and semiconductor stocks expected to endure continued selling pressure. European and U.S. markets closed mostly lower, suggesting further weakness in the region.

The KLCI ended Thursday marginally higher, buoyed by gains in the plantation sector while financials and telecoms showed mixed results.

For the day, the index rose 0.27 points, or 0.02 %, to close at 1,633.81 after trading between 1,627.93 and 1,634.24.

Among the most active stocks, Axiata advanced 1.57 %, Celcomdigi rose 0.81 %, CIMB Group edged up 0.14 %, while Genting and Hong Leong Bank each slipped 0.21 %. Genting Malaysia gained 0.38 %, IHH Healthcare fell 0.16 %, IOI Corporation rose 1.06 %, Kuala Lumpur Kepong climbed 1.85 %, Maxis and Petronas Gas each jumped 1.98 %, Maybank increased 0.20 %, MISC and Hong Leong Financial each declined 1.03 %, Petronas Chemicals edged up 0.17 %, PPB Group surged 2.46 %, Press Metal dropped 8.18 %, Public Bank rose 1.92 %, QL Resources added 0.44 %, RHB Capital gained 0.35 %, Sime Darby fell 0.37 %, Sunway decreased 1.21 %, Telekom Malaysia slipped 0.14 %, Tenaga Nasional fell 0.41 %, YTL Power dropped 3.03 %, while YTL Corporation, SD Guthrie and MRDIY were unchanged.

Wall Street offered little support, with major U.S. indices opening modestly higher on Thursday before turning negative for the session.

The Dow fell 533.06 points, or 1.29 %, to close at 40,665.02; the NASDAQ slipped 125.70 points, or 0.70 %, to end at 17,871.22; and the S&P 500 dropped 43.68 points, or 0.78 %, to finish at 5,544.59.

U.S. market weakness was partly driven by concerns about near‑term prospects after a tech sell‑off linked to reports that the Biden administration is considering stricter trade rules on Chinese semiconductor firms.

In U.S. economic news, the Labor Department reported that initial claims for unemployment benefits rose more than expected last week.

The Federal Reserve Bank of Philadelphia noted broader regional manufacturing growth in July, while the Conference Board recorded a modest decline in its leading‑indicators index for June.

Oil prices eased slightly on Thursday as concerns over Chinese demand and a stronger dollar weighed on the market. West Texas Intermediate crude for August settled down $0.03 at $82.82 per barrel.

Domestically, Malaysia is set to release preliminary Q2 GDP data later today; the economy grew 4.2 % year‑on‑year in the preceding quarter.

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