Continued Consolidation Seen For Malaysia Stock Market

(RTTNews) - The Malaysia stock market on Wednesday snapped the two-day winning streak in which it had collected almost 20 points or 1.2 percent. The Kuala Lumpur Composite Index now sits just above the 1,675-point plateau and it may extend its losses on Thursday.

The global forecast for the Asian markets is negative thanks to a rebound in crude oil prices and a spike in treasury yields. The European and U.S. markets were down and the Asian bourses are expected to follow that lead.

The KLCI finished modestly lower on Wednesday as losses from the financial shares and plantation stocks were mitigated by support from the industrials and telecoms.

For the day, the index slipped 7.07 points or 0.42 percent to finish at 1,676.43 after trading between 1,675.15 and 1,685.37.

The lead from Wall Street is weak as the major averages opened in the red on Wednesday and continued to trend lower throughout the session, ending at daily lows.

The Dow sank 352.10 points or 0.68 percent to finish at 51,511.59, while the NASDAQ dropped 308.24 points or 1.13 percent to close at 26,936.04 and the S&P 500 lost 58.61 points or 0.75 percent to end at 7,706.03.

The weakness that emerged on Wall Street came after a rebound in crude oil prices and treasury yields that followed comments a day earlier from U.S. President Donald Trump.

Speaking before the United Nations General Assembly on Tuesday, Trump said that a deal with Iran may be possible after the midterm elections but said that he may instead just decide to "annihilate the Islamic Republic." He also spoke of setting up a "large military presence" on Greenland.

Crude oil prices snapped a five-day losing streak on Wednesday as prices climbed thanks to ongoing concerns about the Middle East conflict. West Texas Intermediate Crude oil futures for November delivery rose $1.90 or 2.1 percent to $92.40 a barrel.