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Renewed Support Tipped For Malaysia Bourse

The Malaysia stock market on Thursday ended the modest two-day winning streak in which it had gathered more than 7 points or 0.4 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,760-point plateau although it may bounce higher again on Friday.

The global forecast for the Asian markets is upbeat thanks to solid economic data and a rebound in the price of crude oil. The European and U.S. markets were up and the Asian markets are expected to follow that lead.

The KLCI finished slightly lower on Thursday as losses from the financials and plantations were tempered by support from the telecoms.

For the day, the index eased 2.75 points or 0.16 percent to finish at 1,759.09 after trading between 1,757.61 and 1,761.16. Turnover was 3.15 billion shares worth 2.06 billion ringgit. There were 451 gainers and 324 decliners, with 446 stocks finishing unchanged.

Among the actives, Genting Malaysia skidded 2.00 percent, while Digi.com dropped 0.81 percent, YTL Corporation tumbled 0.72 percent, Astro Malaysia Holdings climbed 0.71 percent, IHH Healthcare shed 0.52 percent, Telekom Malaysia jumped 0.48 percent, Tenaga Nasional shed 0.28 percent, CIMB Group dipped 0.16 percent, Sime Darby eased 0.11 percent, Maybank and Public Bank both fell 0.10 percent and Axiata, Kuala Lumpur Kepong and IOI Corporation all were unchanged.

The lead from Wall Street is positive as stocks moved higher on Thursday as the major averages again hit fresh record closing highs.

The Dow rose 113.75 points or 0.50 percent to 22,775.39, while the NASDAQ advanced 50.73 points or 0.78 percent to 6,585.36 and the S&P added 14.33 points or 0.56 percent to 2,552.07.

Positive sentiment was generated after the House approved a $4.1 trillion budget resolution. The resolution includes major spending cuts but is largely seen as a vehicle for Republicans to enact their proposed tax cuts.

Trading activity was subdued ahead of the closely watched monthly jobs report due later today. Employment is expected to rise by 90,000 jobs in September, and the unemployment rate is expected to hold at 4.4 percent.

In economic news, the Labor Department said first-time claims for unemployment benefits fell more than expected in the week ended September 30. Also, the Commerce Department said the trade deficit narrowed by more than expected in August, and also that factory orders jumped 1.2 percent.

Crude oil rebounded on Thursday after weakness earlier in the week. November WTI crude oil was up 81 cents of 1.6 percent to $50.79/bbl.

by RTTNews Staff Writer

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