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Malaysia Stock Market Due For Recovery On Tuesday

The Malaysia stock market has ticked lower in back-to-0back trading days, surrendering almost 20 points or 1 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,840-point plateau although it may find traction on Tuesday.

The global forecast for the Asian markets is broadly positive thanks to a jump in crude oil prices, plus expected bargain hunting after days of heavy selling. The European and U.S. markets were firm and the Asian bourses are expected to follow suit.

The KLCI finished modestly lower on Monday following losses from the financial shares, plantation stocks and telecoms.

For the day, the index sank 13.45 points or 0.72 percent to finish at 1,842.62 after trading between 1,840.04 and 1,853.75. Volume was 2.62 billion shares worth 2.41 billion ringgit. There were 963 decliners and 172 gainers.

Among the actives, Telekom Malaysia plummeted 3.05 percent, while YTL Corporation plunged 2.82 percent, IJM Corporation tumbled 2.17 percent, Sime Darby skidded 1.49 percent, IHH Healthcare dropped 1.15 percent, CIMB Group shed 0.96 percent, Axiata advanced 0.75 percent, Maybank lost 0.38 percent, Public Bank fell 0.35 percent, Petronas Chemicals added 0.25 percent, IOI Corporation dipped 0.21 percent, Genting Malaysia and RHB Capital both gained 0.19 percent and Digi.com was unchanged.

The lead from Wall Street is solid as stocks saw a significant turnaround over the course of trade on Monday after an initial move to the downside.

The Dow jumped 336.70 points or 1.37 percent to 24,874.76, while the NASDAQ added 72.84 points or 1.00 percent to 7,330.70 and the S&P gained 26.69 points or 1.10 percent to 2,720.94.

The rebound on Wall Street reflected recent volatility in the markets amid uncertainty about a potential global trade war and an increase in interest rates. Lingering concerns of a trade war contributed to the initial weakness, as President Donald Trump plans to implement tariffs on steel and aluminum imports.

Trading activity was somewhat subdued, however, as traders looked ahead to the Labor Department's monthly employment report due on Friday.

In economic news, the Institute for Supply Management noted a slowdown in the pace of growth in the service sector in February.

Crude oil prices rose Monday amid reports that a major pipeline in Libya went down Sunday, the second Libyan installation to fail in the past few weeks. As a result, April WTI oil climbed $1.32 or 2.2 percent to $62.57/bbl.

by RTT Staff Writer

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