Malaysia Stock Market Poised To Extend Thursday's Losses

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(RTTNews) – The Malaysia stock market on Thursday ended the two-day winning streak in which it had advanced more than 15 points or 1 percent. The Kuala Lumpur Composite Index now rests just beneath the 1,580-point plateau and it may take further damage on Friday.

The global forecast for the Asian markets is mixed to lower, thanks to coronavirus concerns and sinking crude oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The KLCI finished sharply lower on Thursday following losses from the financial shares, plantation stocks and glove makers.

For the day, the index sank 18.74 points or 1.17 percent to finish at 1,578.89 after trading between 1,577.45 and 1,592.74. Volume was 4.18 billion shares worth 2.91 billion ringgit. There were 747 decliners and 338 gainers.

Among the actives, Axiata declined 1.67 percent, while CIMB Group tumbled 2.23 percent, Dialog Group shed 0.74 percent, and PPB Group both fell 0.44 percent, Genting and IOI Corporation both retreated 1.73 percent, Genting Malaysia surrendered 1.59 percent, Hartalega Holdings cratered 3.89 percent, IHH Healthcare surged 3.28 percent, Kuala Lumpur Kepong sank 1.40 percent, Maybank lost 0.60 percent, Maxis weakened 1.26 percent, MISC plunged 4.52 percent, MRDIY added 0.26 percent, Petronas Chemicals eased 0.12 percent, Press Metal tanked 2.51 percent, Public Bank dropped 1.20 percent, RHB Capital stumbled 0.36 percent, Sime Darby slid 0.43 percent, Sime Darby Plantations skidded 2.01 percent, Telekom Malaysia gained 0.17 percent, Tenaga Nasional dipped 0.39 percent and Top Glove plummeted 5.03 percent.

The lead from Wall Street is negative as the major averages opened higher on Thursday but fell into the red midway through the session and ended that way.

The Dow dropped 151.69 points or 0.43 percent to finish at 34,879.38, while the NASDAQ shed 38.38 points or 0.25 percent to close at 15,248.25 and the S&P 500 fell 20.79 points or 0.46 percent to end at 4,493.28.

The early strength on Wall Street came after the Labor Department released a report showing a bigger than expected decrease in first-time claims for U.S. unemployment benefits last week.

Buying interest waned over the course of the session, however, with traders expressing continued concerns about the impact of the rapid spread of the delta variant of the coronavirus.

Uncertainty about the outlook for monetary policy also weighed on the markets ahead of the next Federal Reserve meeting later this month.

Crude oil futures settled sharply lower Thursday, weighed down by reports that China is looking to release some crude stock from its national reserve. West Texas Intermediate Crude oil futures for October ended down by $1.16 or 1.7 percent at $68.14 a barrel.