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Mild Rebound Tipped For Malaysia Stock Market

The Malaysia stock market on Wednesday ended the two-day winning streak in which it had picked up almost 10 points or 0.6 percent. The Kuala Lumpur Composite Index now rests just above the 1,785-point plateau and it may bounce slightly higher again on Thursday.

The global forecast for the Asian markets is mildly positive, again riding continued strength from crude oil prices. The European and U.S. markets were slightly higher and the Asian markets figure to follow suit.

The KLCI finished slightly lower on Wednesday as losses from the financials were offset by support from the plantation stocks.

For the day, the index lost 3.79 points or 0.21 percent to finish at 1,786.07 after trading between 1,785.50 and 1,793.22. Volume was 2.7 billion shares worth 1.85 billion ringgit. There were 462 decliners and 362 gainers, with 428 stocks finishing unchanged.

Among the actives, Genting Malaysia dropped 2.54 percent, while IOI Corporation spiked 1.98 percent, CIMB Group skidded 1.18 percent, AMMB Holdings climbed 1.16 percent, YTL Corporation tumbled 0.71 percent, Sime Darby advanced 0.11 percent, Public Bank fell 0.19 percent, Telekom Malaysia shed 0.31 percent and Petronas Chemicals, Maybank and Tenaga Nasional all were unchanged.

The lead from Wall Street suggests mild upside as stocks wound up slightly higher on Wednesday, bouncing back and forth across the unchanged line before finishing slightly higher at fresh record closing highs.

The Dow added 39.32 points or 0.18 percent to 22,158.18, while the NASDAQ gained 5.91 points or 0.09 percent to 6,460.19 and the S&P was up 1.89 points or 0.08 percent to 2,498.37.

The choppy trading came amidst uncertainty about the near-term outlook for the markets following recent strength. Traders also stuck to the sidelines ahead of key economic data later this week.

Traders kept an eye on Washington, where House Speaker Paul Ryan, R-Wis., said Republicans will release an outline of their tax reform plan the week of September 25th.

Energy stocks saw considerable strength, with an increase by the price of crude oil generating buying interest. Crude oil for October delivery jumped $1.07 to $49.30 a barrel.

by RTT Staff Writer

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