(RTTNews) – The Malaysia stock market has tracked lower in back-to-back sessions, sinking more than 35 points or 2.3 percent along the way. The Kuala Lumpur Composite Index now rests just beneath the 1,565-point plateau and it’s tipped to open in the red again on Monday.
The global forecast for the Asian markets is soft on concerns for the global economy and for the outlook for interest rates, with technology stocks particularly likely to slide. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.
The KLCI finished sharply lower on Friday following losses from the plantations, telecoms and glove makers, while the financials offered mild support.
For the day, the index sank 18.64 points or 1.18 percent to finish at 1,564.34 after trading between 1,563.93 and 1,578.54. Volume was 3.109 billion shares worth 2.438 billion ringgit. There were 768 decliners and 274 gainers.
Among the actives, Axiata advanced 0.88 percent, while CIMB Group rose 0.20 percent, Dialog Group stumbled 2.82 percent, Digi.com retreated 2.22 percent, Genting dropped 1.28 percent, Genting Malaysia slipped 0.32 percent, Hartalega Holdings eased 0.23 percent, IHH Healthcare skidded 2.12 percent, INARI slumped 1.85 percent, IOI Corporation tanked 3.39 percent, Kuala Lumpur Kepong tumbled 3.11 percent, Maybank collected 0.11 percent, Maxis sank 1.33 percent, MISC lost 0.89 percent, MRDIY was down 0.28 percent, Petronas Chemicals shed 0.97 percent, PPB Group declined 2.46 percent, Press Metal plummeted 7.88 percent, Public Bank fell 0.86 percent, RHB Capital gained 0.33 percent, Sime Darby slid 0.85 percent, Sime Darby Plantations plunged 3.42 percent, Telekom Malaysia added 0.83 percent, Tenaga Nasional dipped 0.34 percent, Top Glove surrendered 2.99 percent and Hong Leong Bank was unchanged.
The lead from Wall Street ends up negative as the major averages spent most of Friday bouncing back and forth across the unchanged line before finally settling in the red.
The Dow dropped 98.63 points or 0.30 percent to finish at 32,899.37, while the NASDAQ tumbled 173.04 points or 1.40 percent to end at 12,144.66 and the S&P 500 sank 23.53 points or 0.57 percent to close at 4,123.34. For the week, the NASDAQ slumped 1.5 percent and the Dow and the S&P both eased 0.2 percent.
The lower close on Wall Street followed the closely watched Labor Department report showing stronger than expected job growth in April.
With the report showing continued strength in the labor market, economists predicted the Federal Reserve will now continue with its plans to raise interest rates sharply over the coming months.
Worries about the outlook for interest rates may have weighed on Wall Street along with a continued increase in treasury yields.
Crude oil prices closed higher on Friday, and posted a weekly gain as well, amid worries about supply following the European Union’s decision proposing some of its toughest measures yet against Russia. West Texas Intermediate Crude oil futures for June ended higher by $1.51 or 1.4 percent at $109.77 a barrel. WTI crude futures gained nearly 5 percent in the week.