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Rebound Expected For Malaysia Stock Market

Ahead of Tuesday's holiday for Deepavali, the Malaysia stock market had fallen lower in two of three trading days since the end of the three-day winning streak in which it had gathered more than 25 points or 1.5 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,710-point plateau although it figures to bounce higher again on Wednesday.

The global forecast for the Asian markets is flat to higher ahead of election results in the United States. The European markets were down and the U.S. bourses were up and the Asian markets figure to follow the latter lead.

The KLCI finished modestly lower on Monday following losses from the financials and entertainment stocks.

For the day, the index sank 5.07 points or 0.30 percent to finish at 1,708.80 after trading between 1,699.60 and 1,720.07. Volume was 2.226 billion shares worth 3.282 billion ringgit. There were 537 decliners and 334 gainers.

Among the actives, Genting Malaysia plummeted 20.48 percent, while Malaysia Airports Holdings plunged 7.76 percent, Genting tumbled 6.39 percent, MISC soared 2.39 percent, Petronas Chemicals spiked 2.32 percent, Axiata Group jumped 1.46 percent, Telekom Malaysia climbed 1.26 percent, IHH Healthcare advanced 0.81 percent, Tenaga Nasional perked 0.68 percent, IOI Corporation added 0.66 percent, Sime Darby dropped 0.42 percent, Dialog Group lost 0.30 percent, Kuala Lumpur Kepong gained 0.24 percent, Maybank fell 0.21 percent, Public Bank eased 0.16 percent and CIMB Group was unchanged.

The lead from Wall Street is positive as stocks fluctuated on Tuesday but maintained an upward bias and finished in the green.

The Dow added 173.31 points or 0.68 percent to 25,635.01, while the NASDAQ gained 47.11 points or 0.64 percent to 7,375.96 and the S&P was up 17.14 points or 0.63 percent to 2,755.45.

The strength on Wall Street came as stocks continued to recover from the sell-off seen in October, which was one of the worst months for the markets in years.

However, traders seemed reluctant to make more significant moves amid uncertainty about the outcome of the midterm elections - which will decide control of the House and the Senate and have a major impact on President Donald Trump's ability to enact his pro-business agenda.

Traders also looked ahead to Thursday's Federal Reserve's monetary policy announcement. The Fed is widely expected to leave interest rates unchanged, but traders will keep a close eye on the accompanying statement for clues about an expected rate hike in December.

Crude oil prices fell again on Tuesday, extending their slide to a seventh successive session on prospects of a drop in demand amid uncertainty about global economic growth. Crude oil futures for December ended down $0.89 or 1.4 percent at $62.21 a barrel.

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