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Continued Consolidation Called For Malaysia Shares

The Malaysia stock market has fallen lower in four straight sessions, declining more than 15 points or 1 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,640-point plateau and it's looking at another soft lead again on Monday.

The global forecast for the Asian markets is slightly negative, although technology stocks are likely to weigh. The European and U.S. market were down and the Asian bourses are predicted to follow suit.

The KLCI finished modestly lower on Friday following losses from the financial shares and mixed performances from the plantation stocks and telecoms.

For the day, the index lost 5.11 points or 0.31 percent to finish at 1,638.63 after trading between 1,636.32 and 1,649.57. Volume was 1.7 billion shares worth 1.7 billion ringgit. There were 498 decliners and 288 gainers.

Among the actives, Malaysia Airports Holdings surged 3.16 percent, while IOI Corporation plummeted 1.65 percent, Public Bank plunged 1.28 percent, Tenaga Nasional tumbled 1.14 percent, Genting Malaysia soared 0.94 percent, CIMB Group sank 0.75 percent, Sime Darby Plantations jumped 0.65 percent, Axiata Group climbed 0.64 percent, Dialog Group skidded 0.61 percent, Top Glove dropped 0.60 percent, Petronas Chemicals added 0.36 percent, Digi.com lost 0.20 percent, Kuala Lumpur Kepong rose 0.16 percent and IHH Healthcare, Maybank, RHB Capital, Sime Darby, Petronas Dagangan and Genting all were unchanged.

The lead from Wall Street is soft as stocks opened lower on Friday, staged a mild recovery in afternoon trade but still finished in the red.

The Dow shed 17.19 points or 0.07 percent, while the NASDAQ lost 40.47 points or 0.562 percent to 7,796.66 and the S&P fell 4.66 points or 0.16 percent to 2,886.98. For the week, the Dow added 0.4 percent, the NASDAQ rose 0.7 percent and the S&P advanced 0.5 percent.

Tech stocks came under pressure after Broadcom (AVGO) reported better than expected fiscal second quarter earnings but lowered its full-year revenue guidance due to ongoing geopolitical uncertainties.

In economic news, the Commerce noted a solid gain in retail sales in May and a strong upward revision in April. Also, the Federal Reserve noted a bigger than expected increase in industrial production in May, although the University of Michigan said its reading on consumer sentiment dropped in June.

Crude oil prices moved up Friday amid rising geopolitical tensions following the recent attacks on two oil tankers in the Gulf of Oman. West Texas Intermediate crude oil futures for July ended up $0.23 or 0.4 percent at $52.51 a barrel. For the week, WTA crude oil futures shed 2.7 percent.

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