Malaysia Shares May Take Further Damage On Monday

(RTTNews) - The Malaysia stock market has moved lower in back-to-back sessions, slipping more than 5 points or 0.3 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,440-point plateau and the losses may accelerate on Monday.

The global forecast for the Asian markets is broadly negative on rising bond yields and their effect on the outlook for interest rates. The European and U.S. markets were down and the Asian markets figure to follow that lead.

The KLCI finished slightly lower on Friday following losses from the plantations and industrials, gains from the financials and a mixed picture from the telecoms.

For the day, the index eased 1.62 points or 0.11 percent to finish at 1,441.04 after trading between 1,438.60 and 1,443.75.

Among the actives, Axiata gained 0.41 percent, while CIMB Group advanced 0.72 percent, Dialog Group sank 0.47 percent, Genting dropped 0.49 percent, Genting Malaysia shed 0.41 percent, IOI Corporation fell 0.25 percent, Maxis rallied 1.01 percent, Maybank rose 0.33 percent, MRDIY added 0.65 percent, Petronas Chemicals plummeted 3.74 percent, PPB Group jumped 1.56 percent, Public Bank collected 0.49 percent, RHB Capital and QL Resources both perked 0.18 percent, Sime Darby Plantations tumbled 1.63 percent, Telekom Malaysia gathered 0.20 percent, Tenaga Nasional declined 1.60 percent, Westports Holdings slumped 0.61 percent and Sime Darby, IHH Healthcare, Kuala Lumpur Kepong, Press Metal, Celcomdigi, MISC and Hong Leong Financial Group were unchanged.

The lead from Wall Street is weak as the major averages opened lower and spent the entire day firmly in the red, ending at session lows.

The Dow dropped 286.89 points or 0.86 percent to finish at 33,127.28, while the NASDAQ slumped 202.37 points or 1.53 percent to close at 12,983.81 and the S&P 500 sank 53.84 points or 1.26 percent to end at 4,224.16.

For the week, the NASDAQ dropped 3.2 percent, the S&P 500 dove 2.4 percent and the Dow tumbled 1.6 percent.

The continued weakness on Wall Street came amid ongoing concerns about the recent surge in treasury yields to 16-year highs. Overnight, the yield on the benchmark ten-year note climbed above 5 percent for the first time since July 2007.

The recent advance by yields reflects continued worries about the outlook for interest rates, with the Federal Reserve signaling rates will remain higher for longer than previously anticipated.

Fears the Israel-Hamas war may escalate into a broader regional crisis also contributed to the negative sentiment on Wall Street.

Crude oil prices couldn't hold on to early gains, slumping on demand concerns amid fears the Israel-Hamas war may escalate into a broader regional crisis. West Texas Intermediate for November delivery, which expired Friday, fell $0.62 or 0.7 percent at $88.75 a barrel. The more active December futures slipped $0.29 or 0.3 percent to $88.08 a barrel.