Losing Streak May Continue For Malaysia Stock Market

(RTTNews) - Ahead of Monday's holiday for National Day, the Malaysia stock market had moved lower in back-to-back sessions, slumping more than 20 points or 1.2 percent along the way. The Kuala Lumpur Composite Index now sits just above the 1,725-point plateau and it may take further damage on Tuesday.

The global forecast for the Asian markets is soft on renewed concerns over the conflict in the Middle East and the corresponding jump in 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 modestly lower on Friday following losses from the telecoms and industrials, while the financials and plantations were mixed.

For the day, the index sank 15.84 points or 0.91 percent to finish at 1,725.88 after trading between 1,715.91 and 1,745.06.

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

The Dow dropped 374.09 points or 0.70 percent to finish at 53,185.90, while the NASDAQ sank 31.54 points or 0.12 percent to close at 26,370.89 and the S&P 500 lost 25.62 points or 0.33 percent to end at 7,686.14.

The weakness on Wall Street came on concerns about a re-escalation of the military conflict in the Middle East following a period of relative calm, contributing to a jump in crude oil prices.

Crude oil prices jumped on Monday as the U.S. recommenced attacks on Iran, stoking concerns of a broader re-escalation in the gulf. West Texas Intermediate crude for October delivery was up $2.24 or 2.69 percent at $85.64 per barrel.

The sharp increase in crude oil prices contributed to renewed worries about the outlook for inflation ahead of this month's Federal Reserve meeting. Treasury yields then moved higher on the day, with the yield on the benchmark ten-year note reaching its highest levels in over a year.