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Malaysia Bourse Likely To Hand Back Wednesday's Gains

The Malaysia stock market on Wednesday wrote a finish to the two-day slide in which it had stumbled almost 25 points or 1.4 percent. The Kuala Lumpur Composite Index now rests just above the 1,600-point plateau although it's expected to head firmly south again on Thursday.

The global forecast for the Asian markets is emphatically negative thanks to worrying signs about the health of the global economy. The European and U.S. markets finished sharply lower and the Asian markets are tipped to follow suit.

The KLCI finished modestly higher on Wednesday following gains from the financial shares, plantation stocks and telecoms.

For the day, the index added 7.43 points or 0.47 percent to finish at 1,600.31 after trading between 1,596.82 and 1,603.04. Volume was 2.4 billion shares worth 1.7 billion ringgit. There were 450 gainers and 319 decliners.

Among the actives, Dialog Group surged 4.13 percent, while CIMB Group soared 1.80 percent, Sime Darby Plantations spiked 1.52 percent, Petronas Chemicals jumped 0.97 percent, Sime Darby climbed 0.93 percent, Digi.com advanced 0.60 percent, AMMB Holdings skidded 0.50 percent, Maybank collected 0.35 percent, Genting Malaysia sank 0.32 percent, Public Bank added 0.29 percent, Kuala Lumpur Kepong gained 0.25 percent, Top Glove rose 0.22 percent, Genting fell 0.17 percent, Tenaga Nasional was up 0.15 percent and Hong Leong Financial, Maxis, Hap Seng Consolidated, IHH Healthcare, Axiata Group and IOI Corporation all were unchanged.

The lead from Wall Street broadly negative as stocks showed a substantial pullback on Wednesday, sending the major averages to two-month closing lows.

The Dow plummeted 800.49 points or 3.05 percent to 25,479, while the NASDAQ tumbled 242.42 points or 3.02 percent to 7,773.94 and the S&P 500 plunged 85.72 points or 2.93 percent to 2,840.60.

The sell-off on Wall Street came amid concerns about a potential recession after the yield on the benchmark ten-year note dropped below the yield on the two-year note - which is widely seen as an indicator of a recession.

The yield on the closely watched thirty-year bond also showed a notable decrease on the day, tumbling to a new record low.

Crude oil prices cratered Wednesday on increasing worries about the outlook for global demand and concern of a supply glut after data showed that U.S. crude oil inventories rose by 1.6 million barrels last week. West Texas Intermediate tumbled $1.71 or 3.01 percent to $55.02 per barrel.

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