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Malaysia Bourse May Extend Losing Streak

The Malaysia stock market has moved lower in three straight sessions, dipping more than 20 points or 1.1 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,775-point plateau and it may take further damage on Monday.

The global forecast for the Asian markets is negative on growing concerns about the outlook for interest rates. The European and U.S. markets were firmly lower and the already oversold Asian bourses are tipped to at least open in the red.

The KLCI finished modestly lower on Friday following losses from the financial shares, telecoms and plantations.

For the day, the index fell 12.96 points or 0.72 percent to finish at 1,777.15 after trading between 1,776.52 and 1,787.52. Volume was 20.5 million shares worth 1.9 billion ringgit. There were 639 decliners and 265 gainers.

Among the actives, Axiata plummeted 4.44 percent, while Dialog Group plunged 2.55 percent, IHH Healthcare tumbled 1.73 percent, Telekom Malaysia skidded 1.60 percent, Genting Malaysia dropped 1.00 percent, IOI Corporation retreated 0.88 percent, Sime Darby declined 0.75 percent, Maybank shed 0.41 percent, Tenaga Nasional lost 0.39 percent, CIMB Group fell 0.33 percent, Petronas Chemicals eased 0.11 percent and Kuala Lumpur Kepong was down 0.08 percent.

The lead from Wall Street is soft as stocks opened sharply lower on Friday and remained in the red throughout the session, extending recent losses.

The Dow slid 180.43 points or 0.68 percent to 26,447.05, the NASDAQ tumbled 91.06 points or 1.16 percent to 7,788.45 and the S&P fell 16.04 points or 0.55 percent to 2,885.57. For the week, the eased 0.1 percent, the S&P lost 1 percent and the NASDAQ plunged 3.2 percent.

The weakness on Wall Street came as treasury yields extended a recent upward move following the release of the monthly jobs report, adding to concerns about the outlook for interest rates.

While the Labor Department report showed weaker than expected job growth in September, the jump in employment in August was upwardly revised and the unemployment rate fell to 3.7 percent for its lowest level since 1969.

Also, the Commerce Department showed the U.S. trade deficit widened in August, reflecting an increase in imports and a decrease in exports.

Crude oil prices retreated after edging higher early on in the session on Friday, as traders weighed the decision of Russia and Saudi Arabia to increase output. Crude oil futures for November ended at $74.34 a barrel, gaining a penny.

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