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More Pain Predicted For Malaysia Stock Market

The Malaysia stock market has moved lower in two of three trading days since the end of the two-day winning streak in which it had gathered almost a dozen points or 0.7 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,695-point plateau and it's likely to take further damage on Wednesday.

The global forecast for the Asian markets is negative on concerns over the health of the global economy and expected continued profit taking. The European and U.S. markets were down and the Asian markets figure to follow that lead.

The KLCI finished slightly lower on Tuesday as losses from the financials and industrials were offset by bargain hunting among the telecoms.

For the day, the index dipped 4.73 points or 0.28 percent to finish at 1,694.99 after trading between 1,688.88 and 1,698.51. Volume was 2.4 billion shares worth 2.1 billion ringgit. There were 525 decliners and 282 gainers.

Among the actives, Telekom Malaysia surged 5.79 percent, while Sime Darby plummeted 2.46 percent, IOI Corporation soared 2.09 percent, Genting Malaysia spiked 1.72 percent, CIMB Group plunged 1.53 percent, Dialog Group tumbled 1.24 percent, Genting skidded 1.21 percent, Tenaga Nasional dropped 1.12 percent, RHB Capital collected 0.94 percent, Digi.com jumped 0.70 percent, IHH Healthcare climbed 0.56 percent, Petronas Chemicals shed 0.22 percent, Maybank dipped 0.11 percent and PPB Group, Public Bank, Malaysia Airports Holdings, Hartalega Holdings, Axiata and MISC all were unchanged.

The lead from Wall Street is brutal as stocks saw a substantial move to the downside on Tuesday, more than offsetting Monday's strong gains.

The Dow shed 799.36 points or 3.10 percent to 25,027.07, while the NASDAQ plunged 283.09 points or 3.80 percent to 7,158.43 and the S&P fell 90.31 points or 3.24 percent to 2,700.006.

The sharp pullback came as the yield on two-year notes rose above the yield on five-year notes, which is seen as an indicator of an upcoming economic slowdown. Profit taking also was a factor following Monday's strong gains.

Uncertainty about whether the 90-day trade truce will give the U.S. and China enough time to reach a long-term trade agreement also inspired traders to cash in.

Crude oil prices moved higher on Tuesday amid speculation the OPEC members will agree on a production cut. Crude oil futures for January delivery ended up $0.30 or 0.6 percent at $53.25 a barrel.

Closer to home, Malaysia will release October data for imports, exports and trade balance later today. In September, imports were worth 67.8 billion ringgit and exports were at 83.0 billion ringgit for a trade surplus of 15.3 billion ringgit.

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