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Malaysia Stock Market May See Renewed Consolidation

The Malaysia stock market on Monday ended the three-day losing streak in which it had fallen more than 30 points or 2 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,560-point plateau although it may head south again on Tuesday.

The global forecast for the Asian markets is mixed to lower, thanks to ongoing concerns regarding the trade spat between the United States and China. The European markets were up and the U.S. bourses were down and the Asian markets are expected to follow the latter lead.

The KLCI finished slightly higher on Monday as gains from the financials were offset by weakness from the plantation stocks.

For the day, the index added 1.33 points or 0.09 percent to finish at 1,559.00 after trading between 1,555.55 and 1,560.37. Volume was 2.2 billion shares worth 1.3 billion ringgit. There were 412 decliners and 359 gainers.

Among the actives, Sime Darby plummeted 1.75 percent, while Petronas Chemicals plunged 1.50 percent, Dialog Group surged 1.19 percent, RHB Capital soared 0.90 percent, Tenaga Nasional spiked 0.89 percent, Hartalega Holdings tumbled 0.76 percent, IOI Corporation skidded 0.70 percent, Genting Malaysia dropped 0.65 percent, Sime Darby Plantations sank 0.63 percent, Genting jumped 0.53 percent, AMMB Holdings shed 0.50 percent, Maybank collected 0.36 percent, Public Bank advanced 0.31 percent, Kuala Lumpur Kepong lost 0.28 percent, Axiata added 0.23 percent, Top Glove gained 0.22 percent and CIMB Group, Press Metal and Digi.com were unchanged.

The lead from Wall Street is soft as stocks showed a lack or direction on Monday, bouncing back and forth across the unchanged line before finishing in the red.

The Dow shed 95.70 points or 0.36 percent to 26,478.02, while the NASDAQ lost 26.18 points or 0.33 percent to 7,956.29 and the S&P 500 fell 13.22 points or 0.45 percent to 2,938.79.

The choppy trading on Wall Street came as traders seemed reluctant to make large moves ahead of Thursday's high-level trade talks in Washington. Chinese officials are signaling they're increasingly reluctant to agree to the broad trade deal being pursued by President Donald Trump.

The negotiations come as the trade war continues to hang over the economy, with a survey by the National Association for Business Economics showing 53 percent of economists see trade policy as the key downside risk to the economy.

Crude oil futures failed to hold early gains and ended slightly weak on Monday, despite data that showed a drop in OPEC output in September. West Texas Intermediate Crude oil futures for November ended down $0.06 at $52.75 a barrel after peaking at $54.06 earlier in the day.

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