KUALA LUMPUR: The FBM KLCI KLCI ended the morning session in negative territory as investors shift to a risk-off mode pending further clarity on various market factors.
The market barometer ended down 5.3 points, or 0.37% to 1,419.68 at midday, dragged by losses in banking and telco counters.
All indices on Bursa Malaysia were down.
The broader market sagged, with losers outnumbering gainers 689 to 146, with 1.08 billion shares worth RM667.26mil changing hands.
According to MIDF Research, foreigners' outflow on Bursa Malaysia accelerated last week as foreign investors disposed of RM562.61mil worth of Malaysian equities, compared to net sales of RM186.16mil in the preceding week.
TA Securities said key index support will be the July low of 1,408, which must hold to prevent a further selloff to the next crucial support at 1,394, which represent the 38.2% Fibonacci Retracement (FR) of the 1,207 low of March 2020 to the Dec 2020 peak of 1,695.
It said the next key chart supports below would be 1,370, 1,350 and 1,323, the 23.6% FR level.
“Immediate overhead resistance is revised lower to 1,450, then 1,480 and 1,500, followed by a recent high of 1,512, with significant resistance from the August high near 1,528,” TA said.
The research house said stocks wise, oil and gas-related lower liners such as Bumi Armada, Dialog Group, DNeX, Hibiscus Petroleum, Velesto and Wah Seong are likely to attract bargain hunters on any further selloffs for recovery upside ahead.
Malacca Securities noted that the FBM KLCI tumbled as a persistent risk-off undertone, coupled with foreign fund outflow (5-day cumulative stood at RM562.5mil) led to a broad-based selldown on the local bourse.
“While the cautious sentiment is likely to continue, we may see milder selling pressure as investors could pick up undervalued stocks and trade ahead of the tabling of the Budget 2023 in October 2022.
“Commodities wise, the crude oil price slumped to trade around the US$86 per barrel mark, while the CPO price continues to consolidate around RM3,700,” it added.
Plantations stocks dominated the losers’ list on Bursa Malaysia. Kuala Lumpur Kepong tumbled 86 sen to RM20.78, Batu Kawan fell 30 sen to RM20.90, Chin Tek lost 30 sen to RM7.92 and United Plantations declined 24 sen to RM14.40.
Among the gainers, PPB rose 21 sen to RM3, IHH Healthcare added 11 sen to RM5.91, Nestle advanced 10 sen to RM127.80 and Computer Forms climbed nine sen to RM1.45.