Malaysia Stock Market May Extend Thursday's Losses

(RTTNews) - The Malaysia stock market gave up less than a single point on Thursday, but that was enough to end the three-day winning streak in which it had collected more than 25 points or 1.9 percent. The Kuala Lumpur Composite Index now rests just above the 1,420-point plateau and the losses may accelerate on Friday.

The global forecast for the Asian markets is soft ahead of key U.S. employment data, which will affect the outlook for interest rates and the likelihood of recession. The European and U.S. markets were down and the Asian bourses are tipped to open in similar fashion.

The KLCI finished barely lower on Thursday following losses from the plantations, support from the glove makers and mixed performances from the financials and telecoms.

For the day, the index eased 0.12 points or 0.01 percent to finish at the daily low of 1,420.43 after peaking at 1,428.13. Volume was 2.249 billion shares worth 1.589 billion ringgit. There were 435 gainers and 328 decliners.

Among the actives, Dialog Group jumped 1.50 percent, while Genting and Hong Leong Financial both fell 0.22 percent, Genting Malaysia sank 0.36 percent, Hartalega Holdings soared 4.65 percent, IHH Healthcare skidded 0.68 percent, INARI added 0.39 percent, IOI Corporation tumbled 1.30 percent, Maybank lost 0.34 percent, Maxis declined 1.09 percent, MISC advanced 0.57 percent, MRDIY rallied 2.01 percent, Petronas Chemicals eased 0.12 percent, PPB Group dropped 0.50 percent, Press Metal spiked 2.33 percent, RHB Capital shed 0.35 percent, Sime Darby retreated 0.91 percent, Sime Darby Plantations slumped 0.71 percent, Telekom Malaysia dipped 0.18 percent, Tenaga Nasional rose 0.12 percent, Top Glove surged 5.47 percent and Public Bank, Axiata, CIMB Group, Digi.com and Kuala Lumpur Kepong were unchanged.

The lead from Wall Street is negative as the major averages opened slightly higher but quickly turned well into the red and remained that way for the rest of the session.

The Dow dropped 346.93 points or 1.15 percent to finish at 29,926.94, while the NASDAQ sank 75.33 points or 0.68 percent to end at 11,073.31 and the S&P 500 declined 38.76 points or 1.02 percent to close at 3,744.52.

The weakness on Wall Street came as traders continued to express concerns about the outlook for interest rates and the impact higher rates will have on the economy.

A continued rebound by treasury yields also weighed on the markets, with the yield on the benchmark ten-year note extending the sharp upward move seen on Wednesday.

Traders were also looking ahead to the release of the Labor Department's closely watched monthly employment report later today.

Oil prices climbed higher on Thursday, rising for a fourth straight session after OPEC announced on Wednesday that it would cut production by 2 million barrels per day from November, while a drop in U.S. crude inventories last week also contributed to the rise in oil prices. West Texas Intermediate Crude oil futures for November added $0.69 or 0.8 percent at $88.45 a barrel.