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Malaysia Stock Market Due For Consolidation

The Malaysia stock market has climbed higher in five straight sessions, rising almost 45 points or 3.2 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,425-point plateau although investors figure to cash in on Wednesday.

The global forecast for the Asian markets suggests profit taking after multiple sessions of gain, as well as ongoing concerns over the lingering effects of Covid-19. The European and U.S. markets were down and the Asian bourses are tipped to follow in similar fashion.

The KLCI finished modestly higher on Tuesday following gains from the financial shares, plantation stocks and industrial issues.

For the day, the index advanced 13.81 points or 0.98 percent to finish at 1,423.97 after trading between 1,418.76 and 1,428.12. Volume was 9.415 billion shares worth 4.612 billion ringgit. There were 554 decliners and 500 gainers.

Among the actives, Petronas Chemicals skyrocketed 5.04 percent, while Genting Malaysia surged 4.39 percent, Kuala Lumpur Kepong soared 3.51 percent, Dialog Group spiked 3.40 percent, Malaysia Airports Holdings accelerated 2.67 percent, Sime Darby Plantations jumped 2.55 percent, Genting climbed 2.51 percent, IOI Corporation gathered 1.93 percent, Press Metal perked 1.90 percent, Hartalega Holdings tumbled 1.31 percent, MISC advanced 1.00 percent, Public Bank added 0.91 percent, Axiata gained 0.77 percent, AMMB Holdings rose 0.68 percent, CIMB Group increased 0.58 percent, Maybank collected 0.54 percent, Digi.com lost 0.45 percent, Tenaga Nasional was up 0.33 percent, Top Glove fell 0.19 percent, IHH Healthcare gained 0.18 percent and Sime Darby, Maxis and RHB Capital were unchanged.

The lead from Wall Street is negative as stocks turned in a lackluster performance of Tuesday before coming under pressure going into the close - offsetting gains from the previous session.

The Dow shed 390.51 points or 1.59 percent to finish at 24,206.86, while the NASDAQ lost 49.72 points or 0.54 percent to 9.185.10 and the S&P 500 fell 30.97 points or 1.05 percent to 2,922.94.

The late-day weakness on Wall Street came as traders cashed in on the rally seen on Monday, which lifted the Nasdaq and the S&P 500 to their best closing levels in over two months.

Traders have recently expressed considerable optimism about the economy reopening, although lingering concerns about the coronavirus pandemic led to some caution.

Traders were also reacting to comments from Federal Reserve Chair Jerome Powell, who reaffirmed the central bank will provide more support to the economy.

Crude oil prices were higher Tuesday, supported by increased demand and output cuts on the expiration of the front-month contract. West Texas Intermediate Crude oil futures expired at $32.50 a barrel, gaining $0.68 or 2.1 percent. July series WTI contract advanced $0.31 or 1 percent to settle at $31.96 a barrel.

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