The losing streak has hit five sessions now for the Malaysia stock market, which has tumbled almost 30 points or 1.8 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,720-point plateau although it may finally stop the bleeding on Friday.
The global forecast for the Asian markets is upbeat thanks to positive earnings news and generally encouraging economic data. The European and U.S. markets were higher on Thursday and the Asian markets figure to follow that lead.
The KLCI finished slightly lower on Thursday as losses from the financials and telecoms were tempered by support from the industrials.
For the day, the index sank 4.88 points or 0.28 percent to finish at 1,718.11 after trading between 1,716.97 and 1,725.72. Volume was 2.4 billion shares worth RM2.5 billion. There were 693 decliners and 254 gainers.
Among the actives, Axiata tumbled 2.63 percent, while Petronas Gas spiked 1.78 percent, YTL Corporation skidded 1.61 percent, CIMB Group dropped 1.33 percent, IHH Healthcare and Genting both shed 0.89 percent, Petronas Chemicals added 0.69 percent, IOI Corporation gained 0.23 percent, Public Bank collected 0.10 percent and Sime Darby, Maybank, Telekom Malaysia and Tenaga Nasional all were unchanged.
The lead from Wall Street is firm as stocks moved higher on Thursday after sliding in the previous two sessions, allowing the NASDAQ to hit a new record closing high.
The Dow added 187.80 points or 0.80 percent to 23,458.36, while the NASDAQ was up 87.08 points or 1.30 percent to 6,793.29 and the S&P 500 added 21.02 points or 0.82 percent to 2,585.64.
The strength reflected a positive reaction to better than expected quarterly results from Wal-Mart (WMT) and Cisco Systems (CSCO). Stocks also advanced after the House voted to approve the Republican tax reform bill, although final passage of legislation remains uncertain.
In economic news, the Labor Department said first-time claims for jobless benefits increased in the week ended November 11. It also said U.S. import prices rose less than expected in October. Also, the National Association of Home Builders noted a gain in homebuilder confidence in November.
The Federal Reserve Bank of Philadelphia said that growth in Philadelphia-area manufacturing activity slowed more than expected in November. The Federal Reserve also said industrial production increased more than expected in October.
Crude oil futures continued to fall Thursday as a large build in U.S. oil inventories has weighed on prices. December WTI oil fell 19 cents or 0.3 percent to $55.14/bbl, sliding further from recent two-year highs near $58.
Closer to home, Malaysia will provide Q3 numbers for gross domestic product and current account later today.
GDP is expected to add 1.1 percent on quarter and 5.85 percent on year after rising 1.3 percent on quarter and 5.8 percent on year in Q2. The current account surplus in the Q2 was 9.6 million ringgit.
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