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Rally May Stall For Malaysia Stock Market

The Malaysia stock market has moved higher in three straight sessions, gathering more than a dozen points or 0.7 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,605-point plateau although it may run out of steam on Wednesday.

The global forecast for the Asian markets is mixed to lower, with tech shares offering mild support against pessimism regarding a trade deal between the United States and China - as well as plummeting crude oil prices. The European and U.S. markets were mostly lower and the Asian bourses figure to follow that lead.

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

For the day, the index rose 0.95 points or 0.06 percent to finish at the daily high of 1,605.31 after moving as low as 1,595.15. Volume was 2.7 billion shares worth 1.6 billion ringgit. There were 411 decliners and 408 gainers.

Among the actives, Digi.com plummeted 2.11 percent, while IHH Healthcare plunged 1.98 percent, Genting Malaysia surged 0.93 percent, Top Glove soared 0.88 percent, MISC spiked 0.61 percent, Public Bank perked 0.60 percent, Dialog Group accelerated 0.58 percent, CIMB Group collected 0.56 percent, Tenaga Nasional jumped 0.44 percent, Hartalega Holdings climbed 0.37 percent, Malaysia Airports Holdings skidded 0.36 percent, Genting dropped 0.33 percent, Axiata shed 0.23 percent, IOI Corporation added 0.23 percent, Sime Darby Plantations gained 0.19 percent, Kuala Lumpur Kepong fell 0.18 percent, RHB Capital rose 0.17 percent, Maybank eased 0.12 percent and Sime Darby and Petronas Chemicals were unchanged.

The lead from Wall Street is murky as stocks showed a lack of direction Tuesday, bouncing back and forth across the unchanged line before eventually ending the session mixed.

The Dow shed 102.24 points or 0.36 percent to 27,933.98, while the NASDAQ rose 20.72 points or 0.24 percent to 8,570.66 and the S&P 500 fell 1.85 points or 0.06 percent to 3,120.18.

Stocks initially moved to the upside amid recent upward momentum, which has helped propel stocks to record highs amid unshakable optimism about a potential U.S.-China trade deal. Buying interest waned shortly after the start of trading, however, with disappointing results from Home Depot (HD) offsetting the positive sentiment.

In economic news, the Commerce Department noted a substantial rebound in new residential construction and building permits in October.

Crude oil prices plunged sharply on Tuesday amid rising concerns about excess supply in the market and uncertainty about the U.S. and China trade deal. West Texas Intermediate Crude oil futures for December ended down $1.84 or 3.2 percent at $55.21 a barrel.

Closer to home, Malaysia will provide October numbers for producer prices later today; in September, inflation was flat on month and up 1.1 percent on year.

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