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Malaysia Bourse Tipped To Extend Losing Streak

The Malaysia stock market has moved lower in four straight sessions, sinking more than 25 points or 1.6 percent along the way. The Kuala Lumpur Composite Index remains just beneath the 1,490-point plateau and it may take further damage again on Monday.

The global forecast for the Asian markets is soft on spiking Covid-19 cases and poor results from bank stress tests. The European markets were mixed and the U.S. bourses were sharply lower and the Asian markets figure to follow the latter lead.

The KLCI finished barely lower on Friday as losses from the plantations and telecoms were mitigated by support from the financial sector.

For the day, the index eased 1.06 points or 0.07 percent to finish at 1,488.14 after trading between 1,483.05 and 1,495.57. Volume was 4.729 billion shares worth 2.384 billion ringgit. There were 590 decliners and 330 gainers.

Among the actives, Top Glove plummeted 3.87 percent, while Axiata surged 2.06 percent, Hartalega Holdings plunged 1.32 percent, Public Bank soared 1.10 percent, Sime Darby spiked 0.96 percent, Tenaga Nasional tumbled 0.86 percent, Genting Malaysia accelerated 0.78 percent, Maxis jumped 0.75 percent, Digi.com climbed 0.72 percent, PPB Group skidded 0.67 percent, Sime Darby Plantations retreated 0.61 percent, Dialog Group advanced 0.55 percent, IOI Corporation declined 0.46 percent, IHH Healthcare dropped 0.37 percent, AMMB Holdings sank 0.32 percent, Petronas Chemicals added 0.32 percent, CIMB Group gained 0.28 percent, Kuala Lumpur Kepong shed 0.27 percent, Maybank collected 0.13 percent, MICS eased 0.13 percent and Genting, Petronas Gas, Malaysia Airports Holdings, RHB Capital, Press Metal and Hong Leong Bank all were unchanged.

The lead from Wall Street is broadly negative as stocks opened sharply lower on Friday and stayed that way throughout the session.

The Dow plummeted 730.05 points or 2.84 percent to finish at 25,015.55, while the NASDAQ tumbled 259.78 points or 2.59 percent to end at 9,757.22 and the S&P 500 sank 74.71 points or 2.42 percent to close at 3,009.05.

The weakness on Wall Street was due largely to a sharp surge in new Covid-19 infections in several states, raising fears of re-imposing restrictions on businesses. The U.S. Centers of Disease Control and Prevention has warned that the number of infected people in the U.S. is most likely 10 times higher than what has been officially reported.

Financials turned lower after the Fed released the results of stress tests on banks - which said the nation's biggest banks are healthy but could suffer up to $700 billion in losses on soured loans if the economy languishes. It also ordered certain banks to cap dividends to conserve funds.

Crude oil futures settled lower on Friday, weighed down by concerns over energy demand outlook in the wake of sharp spikes in new coronavirus infections in several states in the U.S. West Texas Intermediate Crude oil futures for August ended down $0.23 or 0.6 percent at $38.49 a barrel.

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