(RTTNews) - The Malaysian stock market turned back to the downside again on Wednesday, one session after ending the modest two-day losing streak that had cost it more than 6 points or 0.4 percent in the process. The Kuala Lumpur Composite Index remained just above the 1,270-point plateau, and now investors are anticipating a modest recovery at the opening of trade on Thursday.

The global forecast for the Asian markets is positive, thanks to another surge from commodity prices - especially gold, which has hit another fresh record high and is now eying $1,200 per ounce. Steel, retail and telecom stocks also are expected to provide support. The European and U.S. markets ended modestly higher, and the Asian bourses are similarly tipped to trend to the upside.

The KLCI finished flat on Wednesday as gains among the plantations were wiped out by selling in the financial sector.

For the day, the index eased 1.09 points or 0.09 percent to finish at 1,271.00 after trading between 1,268.92 and 1,273.16. Volume was 753.11 million shares worth 1.041 billion ringgit. There were 358 decliners and 287 gainers, with 255 stocks finishing unchanged.

Among the actives, Affin-WC, Maybank, Tenaga, Genting, Tanjong, CIMB and AMMB all finished lower, while Public Bank ended unchanged and Maxis, Etitech, Melewar-WA, Abric-WA, Sime Darby, IOI Corp, PPB and Kuala Lumpur Kepong finished higher.

The lead from Wall Street is cautiously optimistic as stocks moved modestly higher over the course of the trading session on Wednesday. While buying interest remained somewhat subdued, the major averages managed to end the day firmly in positive territory.

The strength in the markets came as traders reacted to some upbeat economic data, including a report from the Labor Department showing that weekly jobless claims fell below the 500,000 level for the first time since early January. The report showed that jobless claims in the week ended November 21 fell to 466,000 from the previous week’s revised figure of 501,000. Economists had been expecting jobless claims to edge down to 500,000 from the 505,000 originally reported for the previous week.

Additionally, a report from the Commerce Department showed that new home sales increased by much more than expected in the month of October, with the report also showing an increase in sales compared to the same month a year ago. New home sales rose 6.2 percent to an annual rate of 430,000 in October from the revised September rate of 405,000. Economists had expected sales to edge up to 404,000 from the 402,000 originally reported for the previous month.

While the Commerce Department released a separate report showing that durable goods orders unexpectedly decreased in the month of October, the report also showed a notable upward revision to pace of order growth in September.

In corporate news, shares of Tiffany & Co. (TIF) turned in a strong performance after the jewelry retailer reported third quarter earnings that were flat year-over-year at $0.35 per share, coming in well above analyst estimates of $0.24 per share. Tiffany also raised its earnings guidance for the full year, saying it now expects to report earnings of $1.88 to $1.98 per share compared to its previous forecast for earnings of $1.65 to $1.75 per share. Analysts had been expecting the company to earn $1.76 per share.

Meanwhile, shares of Microsoft (MSFT) closed moderately lower after the software giant said it has appointed Peter Klein as its new chief financial officer to replace Chris Liddell, who informed the company of his intention to resign his position to pursue other opportunities.

While stocks showed a strong move to the upside in morning trading, they were unable to sustain the upward move. Traders appeared reluctant to continue buying stocks ahead of the Thanksgiving Day holiday.

The major averages moved roughly sideways in late day trading, ending the session modestly higher. The Dow closed up 30.69 points or 0.3 percent at 10,464.40, the NASDAQ rose 6.87 points or 0.3 percent to 2,176.05 and the S&P 500 advanced 4.98 points or 0.5 percent to 1,110.63.

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Posted in Categories: Releases, Stocks.

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