Oversold Malaysia Bourse Called Lower Again

The Malaysia stock market has moved lower in six straight sessions, dropping more than 50 points or 2.8 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,550-point plateau and it's expected to extend its losses again on Monday.

The global forecast for the Asian markets is soft on sinking crude oil prices and on the outlook for interest rates. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.

The KLCI finished modestly lower on Friday following losses from the plantations and mixed performances from the financial shares and glove makers.

For the day, the index shed 6.75 points or 0.43 percent to finish at 1,548.51 after trading between 1,543.08 and 1,556.74. Volume was 5.122 billion shares worth 4.181 billion ringgit. There were 620 decliners and 470 gainers,

Among the actives, Axiata skidded 1.76 percent, while CIMB Group collected 0.42 percent, Dialog Group plummeted 4.98 percent, Digi.com and PPB Group were both down 0.22 percent, Genting retreated 1.63 percent, Genting Malaysia gained 0.33 percent, Hartalega Holdings spiked 2.40 percent, IHH Healthcare jumped 1.82 percent, IOI Corporation tanked 3.58 percent, Kuala Lumpur Kepong surrendered 1.27 percent, Maybank slid 0.48 percent, Maxis and MISC both added 0.43 percent, MRDIY fell 0.51 percent, Petronas Chemicals shed 0.87 percent, Press Metal perked 1.05 percent, Public Bank climbed 1.25 percent, RHB Capital lost 0.56 percent, Sime Darby dropped 0.88 percent, Sime Darby Plantations declined 1.55 percent, Telekom Malaysia tumbled 1.84 percent, Tenaga Nasional sank 1.00 percent and Top Glove plunged 4.38 percent.

The lead from Wall Street is firmly negative as the major averages opened lower on Friday and stayed that way throughout the session.

The Dow shed 166.44 points or 0.48 percent to finish at 34,584.88, while the NASDAQ sank 137.96 points or 0.91 percent to end at 15,043.97 and the S&P 500 fell 40.76 points or 0.91 percent to close at 4,432.99. For the week, the Dow eased 0.1 percent, the NASDAQ lost 0.5 percent and the S&P fell 0.6 percent.

The weakness on Wall Street came as traders looked ahead to next week's highly anticipated monetary policy meeting from the Federal Reserve. The Fed is widely expected to leave monetary policy unchanged but could address the outlook for its asset purchase program.

The minutes of the Fed's last meeting signaled the central bank might begin scaling back asset purchases by the end of the year. With recent disappointing economic data suggesting the Fed could delay, traders will pay close attention to the wording of the post-meeting statement.

Crude oil futures settled lower Friday on reports crude supply is being restored after hurricanes Ida and Nicholas had impacted production in the Gulf of Mexico. A firm dollar also led to the decline in crude oil prices. West Texas Intermediate Crude oil futures for October fell $0.64 or 0.9 percent at $71.97 a barrel. WTI crude futures gained more than 3 percent for the week.

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