Malaysia Stock Market May Extend Losing Streak

(RTTNews) - The Malaysia stock market has closed lower in eight straight sessions, slumping almost 70 points or 4.4 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,395-point plateau and it's looking at another hostile lead for Monday's trade.

The global forecast for the Asian markets is mixed to lower on recession fears and the outlook for interest rates. The European markets were up and the U.S. bourses were down and the oversold Asian bourses figure to split the difference.

The KLCI finished slightly lower on Friday following losses from the telecoms and plantations, while the financials were mixed and the glove makers offered strong support.

For the day, the index eased 2.87 points or 0.21 percent to finish at 1,394.63 after trading between 1,390.41 and 1,402.23. Volume was 2.077 billion shares worth 1.913 billion ringgit. There were 462 decliners and 358 gainers.

Among the actives, Axiata tumbled 1.50 percent, while CIMB Group sank 0.39 percent, Dialog Group declined 1.49 percent, Digi.com lost 0.29 percent, Genting climbed 1.13 percent, Genting Malaysia jumped 1.45 percent, Hartalega Holdings soared 5.06 percent, IHH Healthcare shed 0.34 percent, INARI slumped 1.18 percent, IOI Corporation fell 0.26 percent, Kuala Lumpur Kepong dropped 0.38 percent, Maybank gained 0.23 percent, Maxis stumbled 1.13 percent, MISC plunged 2.03 percent, PPB Group skidded 0.62 percent, Press Metal advanced 1.00 percent, Public Bank collected 0.71 percent, Sime Darby added 0.47 percent, Sime Darby Plantations retreated 1.45 percent, Telekom Malaysia tanked 1.80 percent, Tenaga Nasional plummeted 2.42 percent, Top Glove surged 6.84 percent and MRDIY, Petronas Chemicals and RHB Capital were unchanged.

The lead from Wall Street is negative as the major averages hugged the line through the first half of Friday's trade but headed firmly south in the afternoon, closing near daily lows.

The Dow plummeted 500.09 points or 1.71 percent to finish at 28,725.51, while the NASDAQ tumbled 161.88 points or 1.51 percent to close at 10.575.62 and the S&P 500 dropped 54.85 points or 1.51 percent to end at 3,585.62.

For the week, the NASDAQ dove 2.7 percent, while the Dow and the S&P 500 both plunged 2.9 percent. The major averages also posted steep losses for the month and the quarter.

The extended sell-off on Wall Street reflected lingering concerns about the global economic outlook amid aggressive interest rate hikes by central banks around the world.

Adding to the negative sentiment, a reading on inflation said to be preferred by the Federal Reserve showed an acceleration in the pace of core consumer price growth in August. The faster rate of price growth may lead the Fed to maintain is aggressive stance regarding future rate hikes.

Crude oil futures failed to hold early gains and settled lower on Friday as worries about the outlook for energy demand weighed on prices. West Texas Intermediate Crude oil futures for November ended lower by $1.74 or 2.1 percent at $79.49 a barrel.