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Malaysia Bourse May Open Under Pressure

Ahead of Monday's holiday for Hari Raya Haji, the Malaysia stock market has alternated between positive and negative finishes since the end of the two-day slide in which it had stumbled almost 30 points or 1.8 percent. The Kuala Lumpur Composite Index now rests just above the 1,615-point plateau and the losses may accelerate on Tuesday.

The global forecast for the Asian markets is broadly negative on continuing concerns over the trade dispute between the United States and China. The European and U.S. markets were down and the Asian bourses are tipped to follow suit.

The KLCI finished barely lower on Friday following mixed performances from the financial shares, plantation stocks and industrial issues.

For the day, the index eased 0.97 points or 0.06 percent to finish at 1,615.05 after trading between 1,613.27 and 1,620.76.

Among the actives, Hong Leong Financial plummeted 1.48 percent, while IOI Corporation plunged 1.40 percent, Sime Darby surged 1.39 percent, Petronas Chemicals soared 1.23 percent, Press Metal spiked 1.04 percent, Top Glove tumbled 0.66 percent, Sime Darby Plantations skidded 0.64 percent, AMMB Holdings retreated 0.49 percent, Public Bank jumped 0.47 percent, Digi.com and CIMB Group both sank 0.40 percent, RHB Capital collected 0.36 percent, IHH Healthcare dropped 0.35 percent, Kuala Lumpur Kepong shed 0.34 percent, Genting lost 0.32 percent, Genting Malaysia fell 0.31 percent, Maybank slid 0.23 percent, Hartalega Holdings was down 0.20 percent, Tenaga Nasional eased 0.14 percent, MICS added 0.14 percent and PPB Group, Dialog Group, Malaysia Airports Holdings and Axiata Group were unchanged.

The lead from Wall Street is soft as stocks opened sharply lower on Monday and continued to head south throughout the day, extending last week's losses.

The Dow shed 391.00 points or 1.49 percent to 25,896.44, while the NASDAQ lost 95.73 points or 1.20 percent to 7,863.41 and the S&P 500 fell 35.96 points or 1.23 percent to 2,882.69.

The sell-off on Wall Street came amid worries about a prolonged trade war between the U.S. and China after President Donald Trump recently indicated he feels no sense of urgency to resolve the dispute.

Concerns about the impact of increasingly violent protests in Hong Kong also weighed on stocks, with the Hong Kong International Airport canceling all departing flights due to the disruption caused by protesters.

The geopolitical concerns increased the appeal of safe haven assets like bonds, resulting in a steep drop in U.S. treasury yields. The yield on the benchmark ten-year note tumbled to its lowest closing level in almost three years.

Crude oil prices were higher Monday on speculation production cuts by OPEC and fewer shipments from Saudi Arabia will outweigh concerns about near term energy demand outlook. West Texas Intermediate crude oil futures for September ended up $0.43 or 0.8 percent at $54.93 a barrel.

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