The FBM KLCI had started the day on a rebound, although the effort fizzled by mid-morning to return the index to negative territory.
At 12.30pm, the FBM KLCI had fallen 4.79 points to 1,489.81, led lower by a broad range of counters including Top Glove down six sen to RM3.92, Tenaga Nasional falling three sen to RM9.61, Public Bank slipping one sen to RM3.97 and Axiata shedding three sen to RM3.70.
Kenanga Research had forecast further technical weakness as fresh bearish technical signals emerged following last week's sell-off.
"On the chart, the benchmark index could test our first support threshold of 1,475 (S1), a level where the key market bellwether had previously bounced off thrice between end-June and early November last year.
"Should S1 give way, the FBMKLCI may then slide towards our next support level of 1,440 (S2), which is where it was back in May last year," it said in its weekly technical outlook.
The research house's immediate support-turned-resistance now stands at 1,510.
However, Kenanga noted that there could be some bright spots when listed companies release their latest quarterly earnings this month.
On the broader market today, decliners outpaced gainers 612 to 333. Most active stocks were Serba Dinamik down 1.5 sen to 38 sen, PUC up 0.5 sen to 18.5 sen and M3Tech sliding one sen to 5.5 sen.
The semiconductor sector was seeing some positive price action after the recent global tech rout.
Vitrox rose RM1.64 to RM20.54, MPI gained RM1.34 to RM45.84, KESM gained 64 sen to RM13.80. and Unisem climbed 27 sen to RM8.62.
In Asian markets, Chinese equities had begun to climb from oversold conditions, especially as global stocks benefited from the added lift of strong earnings results from US corporates.
The Shanghai Composite Index was up 1.5% while Hong Kong's Hang Seng climbed 0.9%.
Japan's Nikkei rose 1.9% and South Korea's Kospi gained 0.3% while Australia's ASX200 added 1.4%.