RTTNews - The Malaysian stock market on Monday wrote a finish to the modest two-day winning streak in which it had gathered only two points or 0.16 percent. The Kuala Lumpur Composite Index is maintaining support at 1.060 points, although investors are looking for a recovery by the opening of trade on Tuesday.
The global forecast for the Asian markets is optimistic, with many of the regional bourses poised for a recovery after being mired in lengthy and costly losing streaks. Financials are tipped to be a source of strength, although the gains could be slightly limited by continued weakness from the oil companies. The European and U.S. markets ended sharply higher as earnings season continues, and the Asian markets are also predicted to put on significant gains.
The KLCI finished slightly lower on Monday, tugged to the downside by modest losses among the financial stocks, as well as slight declines among the plantation shares and the industrial issues.
For the day, the index eased 4.10 points or 0.38 percent to close at the daily low of 1,063.66 after peaking at 1,068.50. Volume was 550.844 million shares worth 841.033 million ringgit. There were 377 decliners and 195 gainers, with 181 stocks finishing unchanged.
Among the actives, KNM Group, SAAG Consolidated, Iris Corporation, Time Engineering, Maybank and Tenaga Nasional all finished lower, while Compugates was flat and Telekom Malaysia ended slightly higher.
The lead from Wall Street is broadly positive as stocks rallied amid some positive analyst comments on the financial sector after showing a lack of direction in early trading on Monday. The major averages finished in positive territory by substantial margins, staging their strongest performance of the month.
Financial stocks led the way higher on the heels of positive comments from influential analyst Meredith Whitney, who raised her rating on Goldman Sachs (GS) to Buy from Neutral. Whitney also said Bank of America (BAC) could provide value for investors.
On the earnings front, railroad operator CSX Corp. (CSX) is reported second quarter earnings after the close of trading, reporting earnings of $0.78 per share compared to $0.93 per share last year. Excluding the impact of discontinued operations, the company earned $0.72 per share.
Meanwhile, Novellus Systems (NVLS) reported an adjusted second-quarter loss of $39.3 million or $0.41 per share versus net income of $6.2 million or $0.06 per share in the year ago quarter. Wall Street analysts expected the company to report a loss of $0.38 per share for the quarter.
The major averages saw some further upside going into the close, ending the session at their best levels of the day. The Dow closed up by 185.16 points or 2.3 percent at 8,331.68, the NASDAQ moved up by 37.18 points or 2.1 percent to 1,793.21 and the S&P 500 rose by 21.92 points or 2.5 percent to 901.05.
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