KUALA LUMPUR: Bursa Malaysia is expected to remain volatile as US markets came under pressure overnight on fears over funding support for a major Swiss bank.
Investors are fretting over the financial status of Credit Suisse, Switzerland's second-largest bank, as its largest investor said it could not provide any more funding to the lender.
The US Dow Jones Index shed 0.9% or 280 points in the recent session as all eyes have turned to the Swiss central bank for affirmation that it would provide Credit Suisse with more liquidity if it were required.
At the open, the FBM KLCI dropped 3.11 points to 1,400.82 as it struggled to hold on to the psychological support amid the ongoing fallout in the global financial sector.
"Global uncertainties may not abate with the Wall Street turning mixed once again on the back of revived fears of a banking crisis," said Malacca Securities Research in a note.
"Credit Suisse is making the headlines after Saudi National Bank mentioned it will not provide further financial help for the bank.
"Thus, the local bourse may trade in consolidation mode prior to the US interest rate decision next week."
The research firm said the technical indicators on the FBM KLCI remained negative as the MACD histogram extended a negative bar, while the RSI was in the oversold zone.
"Resistance is set along 1,420-1,440, while the support is at 1,380-1,400," it added.
In early Thursday trade, the trading stock of local banks were negative with Maybank falling four sen to RM8.31, Public Bank dropping three sen to RM3.92, CIMB shedding 10 sen to RM5.13 and Hong Leong Bank sliding 10 sen to RM19.90.
Meanwhile, PETRONAS Chemicals lost eight sen to RM6.92, Tenaga Nasional dropped five sen to RM9.37 and Press Metal
slid four sen to RM4.76.
In the technology sector, MPI dropped 24 sen to RM28.50, KESM slid 20 sen to RM7.50 and D&O fell eight sen to RM4.17.
Top actives included Hong Seng unchanged at 15 sen, PUC flat at three sen and Capital A up 0.4 sen to 80.5 sen.
