Malaysia Stock Market May Extend Losing Streak

(RTTNews) - The Malaysia stock market has moved lower in two straight sessions, sinking more than 15 points or 1 percent along the way. The Kuala Lumpur Composite Index now sits just below the 1,445-point plateau and it's expected to see continued consolidation again on Thursday.

The global forecast for the Asian markets is broadly negative following a downgrade in the United States' credit rating. The European and U.S. markets were firmly lower and the Asian markets are expected to open in similar fashion.

The KLCI finished modestly lower on Wednesday following losses from the financial shares and plantation stocks, while the telecoms were mixed.

For the day, the index shed 6.68 points or 0.46 percent to finish at 1,444.56 after trading between 1,441.85 and 1,450.28.

Among the actives, Celcomdigi added 0.45 percent, while CIMB Group dropped 0.91 percent, Dialog Group tumbled 1.75 percent, Genting skidded 0.95 percent, Genting Malaysia slumped 1.17 percent, IHH Healthcare gained 0.34 percent, Kuala Lumpur Kepong fell 0.26 percent, Maxis dipped 0.25 percent, Maybank lost 0.44 percent, MISC slid 0.14 percent, Petronas Chemicals declined 1.46 percent, PPB Group eased 0.12 percent, Press Metal plunged 1.98 percent, Public Bank collected 0.24 percent, RHB Capital shed 0.53 percent, Sime Darby advanced 0.46 percent, Sime Darby Plantations retreated 1.55 percent, Telekom Malaysia was up 0.20 percent, Tenaga Nasional rose 0.21 percent, Westports Holdings sank 0.86 percent and Axiata and IOI Corporation were unchanged.

The lead from Wall Street suggests consolidation as the major averages opened lower and remained in the red throughout the trading day, ending near session lows.

The Dow tumbled 348.16 points or 0.98 percent to finish at 35,282.52, while the NASDAQ sank 310.47 points or 2.17 percent to end at 13,973.45 and the S&P 500 dropped 63.34 points or 1.38 percent to close at 4,513.39.

The sell-off on Wall Street came after credit rating agency Fitch Ratings unexpectedly downgraded the United States' credit rating. Fitch downgraded the U.S.' long-term foreign-currency issuer default rating to AA+ from AAA, citing a "steady deterioration in standards of governance over the last 20 years."

In U.S. economic news, payroll processor ADP said U.S. private sector employment jumped more than expected in July. But while the report points to continued strength in the U.S. labor market, the data may lead to renewed concerns about the outlook for interest rates.

On Friday, the Labor Department is scheduled to release its more closely watched report on employment in July.

Crude oil prices tumbled on Wednesday amid concerns about outlook for demand, despite data showing a massive drop in crude stockpiles in the U.S. last week. West Texas Intermediate Crude oil futures for September ended lower by $.88 or 2.3 percent at $79.49 a barrel.