Losing Streak May Continue For Malaysia Stock Market

The Malaysia stock market has tracked lower in back-to-back trading days, slipping almost 25 points or 1.5 percent along the way. The Kuala Lumpur Composite Index now rests just above the 1,575-point plateau and it may take further damage again on Monday.

The global forecast for the Asian markets is soft on ongoing coronavirus concerns. The European markets were mixed and little changed and the U.S. bourses were down and the Asian markets figure to split the difference.

The KLCI finished slightly lower on Friday following losses from the plantations and mixed performances from the financials and glove makers.

For the day, the index dipped 2.92 points or 0.18 percent to finish at 1,575.97 after trading between 1,572.61 and 1,583.84. Volume was 4.395 billion shares worth 2.753 billion ringgit. There were 498 gainers and 467 decliners.

Among the actives, Axiata and Petronas Gas both fell 0.24 percent, while CIMB Group added 0.41 percent, Dialog Group plunged 1.49 percent, Genting Malaysia and Hong Leong Bank both shed 0.32 percent, Hartalega Holdings dropped 0.47 percent, IHH Healthcare eased 0.15 percent, IOI Corporation lost 0.26 percent, Kuala Lumpur Kepong tanked 1.04 percent, Maybank collected 0.36 percent, Maxis plummeted 1.27 percent, MISC tumbled 0.72 percent, Petronas Chemicals spiked 1.27 percent, Press Metal jumped 1.03 percent, RHB Capital skidded 0.55 percent, Telekom Malaysia sank 0.49 percent, Tenaga Nasional gained 0.39 percent, Top Glove climbed 0.88 percent and Genting, Sime Darby, Sime Darby Plantations, MRDIY, PPB Group, Public Bank and Digi.com were unchanged.

The lead from Wall Street is negative spent Friday's session bouncing back and forth across the unchanged line before finally ending in the red, extending recent losses.

The Dow shed 271.68 points or 0.78 percent to finish at 34,607.72, while the NASDAQ lost 132.81 points or 0.87 percent to end at 15,115.49 and the S&P 500 fell 34.70 points or 0.77 percent to close at 4,458.58. For the week, the Dow lost 2.2 percent, the NASDAQ sank 1.6 percent and the S&P fell 1.7 percent.

Some initial strength on Wall Street came on bargain hunting, but buying interest quickly waned as traders continued to express concerns about the economic impact of the delta variant.

Traders may also have been wary of buying stocks ahead of the Federal Reserve's next monetary policy meeting later this month. The Fed may provide an update on the plans for its asset purchase program, although recent signs of slowing economic momentum could lead the central bank to push back tapering.

In U.S. economic news, the Labor Department reported that producer prices increased by slightly more than expected in August.

Crude oil futures settled sharply higher Friday on signs of a drop in crude supply in the U.S. due to the impact of Hurricane Ida. West Texas Intermediate Crude oil futures for October ended up $1.58 or 2.3 percent at $69.72 a barrel. WTI crude futures gained 0.6 percent for the week.

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