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Malaysia Stock Market Tipped To Snap Losing Streak

The Malaysia stock market has finished lower in three straight sessions, sinking almost 25 points or 1.6 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,490-point plateau although it may stop the bleeding on Friday.

The global forecast for the Asian markets is positive, with financials expected to lead the way on eased investment regulations. The European and U.S. markets were up and the Asian bourses are tipped to open in similar fashion.

The KLCI finished modestly lower on Thursday following losses from the financial shares, plantation stocks and telecoms.

For the day, the index sank 13.43 points or 0.89 percent to finish at 1,489.20 after trading between 1,484.40 and 1,498.61. Volume was 4.495 billion shares worth 2.488 billion ringgit. There were 728 decliners and 253 gainers.

Among the actives, AMMB Holdings plummeted 2.79 percent, while Genting Malaysia plunged 2.66 percent, Axiata tanked 2.59 percent, Malaysia Airports Holdings tumbled 2.10 percent, Genting skidded 1.87 percent, IOI Corporation retreated 1.59 percent, Petronas Chemicals declined 1.56 percent, CIMB Group surrendered 1.38 percent, Tenaga Nasional dropped 1.36 percent, MISC sank 1.28 percent, Kuala Lumpur Kepong shed 1.16 percent, Sime Darby Plantations lose 1.01 percent, Press Metal fell 0.88 percent, Digi.com slid 0.71 percent, Maxis dipped 0.56 percent, Dialog Group slipped 0.55 percent, Maybank was down 0.39 percent, IHH Healthcare eased 0.37 percent, RHB Capital added 0.21 percent, PPB Group rose 0.11 percent and Sime Darby, Top Glove, Hartalega Holdings and Hong Leong Bank were unchanged.

The lead from Wall Street is upbeat as stocks shook off early weakness on Thursday before moving sharply higher in the final hour of trade.

The Dow spiked 299.66 points or 1.18 percent to finish at 25,745.60, while the NASDAQ jumped 107.84 points or 1.09 percent to end at 10.017.00 and the S&P 500 climbed 33.43 points or 1.10 percent to close at 3,083.76.

The late rally on Wall Street was fueled by financial stocks following news that regulators plan to ease banking regulations, including allowing banks to more easily make investments in riskier funds such as venture capital funds.

The choppy trading seen for most of the session came as investors weighed recent optimism about an economic recovery against spiking coronavirus cases in a number of states. Traders may be worried about the possibility of states re-imposing restrictions on businesses.

In economic news, the Labor Department reported a much smaller than expected drop in initial jobless claims last week, while the Commerce Department noted a substantial rebound in durable goods orders last month.

Crude oil prices were higher Thursday, recovering from losses in the previous two sessions despite continued concerns about energy demand outlook following a surge in new coronavirus cases. West Texas Intermediate crude oil futures for August ended up $0.71 or 1.9 percent at $38.72 a barrel.

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