Malaysia Stock Market May Test Support At 1,700 Points

(RTTNews) - The Malaysia stock market has finished lower in two of three trading days since the end of the two-day winning streak in which it had collected almost 15 points or 0.9 percent. The Kuala Lumpur Composite Index now sits just shy of the 1,715-point plateau and the losses may accelerate on Wednesday.

The global forecast for the Asian markets is weak on persistent hostilities in the Middle East and the resulting spike in crude oil prices. The European markets were flat and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The KLCI finished barely lower on Tuesday as losses from the financials, properties and utilities were mitigated by gains among the telecoms, plantations and construction companies.

For the day, the index dipped 0.39 points or 0.02 percent to finish at 1,714.40 after trading between 1,710.44 and 1,714.50.

The lead from Wall Street is weak as the major averages opened lower on Tuesday and remained under water throughout the trading day, ending at session lows.

The Dow tumbled 628.18 points or 1.18 percent to finish at 52,786.07, while the NASDAQ sank 85.58 points or 0.32 percent to close at 26,421.41 and the S&P 500 shed 45.08 points or 0.58 percent to end at 7,673.52.

The weakness on Wall Street came amid a sharp increase by the price of crude oil due to the continued escalation of the conflict in the Middle East after the U.S. struck three Iranian crude oil carriers over the weekend.

Iran has threatened to retaliate against any new U.S. attacks on its assets and Saudi-led coalition forces vowed a resolute response to a wave of attacks from Houthi rebels.

Crude oil prices surged on Tuesday as U.S. forces and Iran continue to trade attacks, fueling supply concerns. West Texas Intermediate crude for October delivery was last up $1.31 or 1.43 percent at $92.79 per barrel.

Closer to home, Malaysia will provide July numbers for industrial production later today, with forecasts suggesting an increase of 5.4 percent on year, slowing from 6.5 percent in June.