Malaysia Bourse May Extend Friday's Losses
The Malaysia stock market on Friday snapped the six-day winning streak in which it had advanced more than 50 points or 2.7 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,870-point plateau and it may take further damage on Monday.
The global forecast for the Asian markets is negative thanks to geopolitical concerns after U.S. strikes in Syria. The European markets were up, and the U.S. bourses were down - and the Asian markets figure to follow the latter lead.
The KLCI finished modestly lower on Friday following weakness from the industrials and mixed performances from the financials and plantations.
For the day, the index sank 5.15 points or 0.27 percent to finish at 1,868.47 after trading between 1,866.02 and 1,871.13. Volume was 2.7 billion shares worth 2.2 billion ringgit. There were 601 gainers and 325 decliners.
Among the actives, Astro Malaysia Holdings plummeted 5.26 percent, while Telekom Malaysia plunged 2.34 percent, MISC tumbled 2.23 percent, Kuala Lumpur Kepong skidded 1.62 percent, Genting Malaysia jumped 1.60 percent, Petronas Chemicals dropped 0.94 percent, YTL Corporation shed 0.69 percent, IHH Healthcare added 0.49 percent, DiGi.com lost 0.44 percent, IOI Corporation gained 0.42 percent, Public Bank fell 0.25 percent, CIMB Group collected 0.14 percent, Tenaga Nasional eased 0.13 percent and Maybank, Sime Darby, PPB Group, AMMB Holdings and Hong Leong Bank all were unchanged.
The lead from Wall Street suggests mild consolidation as stocks failed to hold an initial upward move on Friday and finished in the red - offsetting gains from the previous session.
The Dow slid 122.91 points or 0.50 percent to 24,360.14, the NASDAQ dropped 33.60 points or 0.47 percent to 7,106.65 and the S&P fell 7.69 points or 0.29 percent to 2,656.30. For the week, the NASDAQ surged 2.8 percent, the S&P gained 2 percent and the Dow added 1.8 percent.
The initial strength was a positive reaction to earnings news from financial giants JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC) - which all beat estimates.
Buying interest waned shortly after the open, however, ahead of this week's earnings news that includes Bank of America (BAC), Goldman Sachs (GS), Johnson & Johnson (JNJ), IBM (IBM), American Express (AXP), and General Electric (GE).
Crude oil futures surged amid expectations OPEC has re-balanced the oil markets with its supply quota plan. The cartel is determined to put a floor under oil prices around $70 a barrel, analysts say. WTI sweet crude was up 32 cents or 0.5 percent to $67.39/bbl for a weekly gain of 8.8 percent.
Closer to home, Malaysia will provide February figures for unemployment later today; in January, the jobless rate was 3.4 percent, while the participation rate was 68.2 percent.
by RTTNews Staff Writer
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