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Malaysia Stock Market Tipped To Extend Losing Streak

The Malaysia stock market has moved lower in three straight sessions, sinking more than 20 points or 1.2 percent along the way. The Kuala Composite Index now rests just beneath the 1,590-point plateau and it may take further damage on Wednesday.

The global forecast for the Asian markets is soft, with technology stocks and airlines expected to lead the way lower. The European markets were down and the U.S. bourses were mostly negative and the Asian markets are also tipped to open under pressure.

The KLCI finished slightly lower on Tuesday following losses from the financial shares and glove makers.

For the day, the index eased 2.48 points or 0.16 percent to finish at 1,588.25 after trading between 1,587.87 and 1,597.42. Volume was 7.455 billion shares worth 4.129 billion ringgit. There were 529 decliners and 524 gainers.

Among the actives, Axiata plunged 2.12 percent, CIMB Group dropped 0.48 percent, Digi.com gained 0.24 percent, Genting Malaysia rallied 1.05 percent, Hartalega Holdings sank 0.50 percent, Kuala Lumpur Kepong lost 0.27 percent, Maybank shed 0.36 percent, MISC skidded 0.74 percent, Petronas Chemicals and Hong Leong Financial both rose 0.12 percent, PPB Group added 0.32 percent, Public Bank fell 0.24 percent, RHB Capital collected 0.58 percent, Sime Darby tanked 1.33 percent, Sime Darby Plantations spiked 1.11 percent, Supermax tumbled 1.02 percent, Telekom Malaysia declined 0.53 percent, Tenaga Nasional advanced 0.40 percent, Top Glove retreated 0.55 percent and Genting, Maxis, Dialog Group, IHH Healthcare, IOI Corporation and Press Metal were unchanged.

The lead from Wall Street is mainly negative as the major averages opened Tuesday deep in the red and largely stayed that way, although the Dow managed to peak into the green at the close.

The Dow rose 19.80 points or 0.06 percent to finish at 34,133.03, while the NASDAQ plummeted 261 points or 1.88 percent to end at 13,633.50 and the S&P 500 lost 28.00 points or 0.67 percent to close at 4,164.66.

The weakness on Wall Street largely reflected a continued pullback by technology stocks, with traders cashing in on tech stocks that benefited from the coronavirus-induced lockdowns as more states continue to lift restrictions.

Additional selling pressure was generated in reaction to comments from Treasury Secretary Janet Yellen, who suggested interest rates may have to rise modestly to prevent the economy from overheating amid the recent spike in government spending.

In economic news, the Commerce Department said the U.S. trade deficit hit a new record high in March. The Commerce Department also said new orders for U.S. manufactured goods rebounded less than expected in March.

Crude oil prices moved sharply higher Tuesday, extending gains from previous session amid continued optimism about increased demand for fuel. West Texas Intermediate Crude oil futures for June ended higher by $1.20 or 1.9 percent at $65.69 a barrel.

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