KUALA LUMPUR: The overnight rout on Wall Street spilled over into the domestic market as investors sold down equities amid fears of a US recession.
The FBM KLCI gapped down more than 10 points at the opening bell to 1,526.01 as investors dumped equities amid the rising economic risk.
With investor nerves already frayed due to an escalating trade war, US President Donald Trump in an interview declined to rule out the possibility that the rising costs could spark a recession.
TA Securities predicted the correction in the US and European markets would filter through to drag the local market lower.
The research firm lowered its immediate index supports to the Aug 6, 2024, low of 1,529 and 1500 psychological level, with next key retracement support at 1,472.
"Immediate resistance remains at 1,580, then 1,605, with next upside hurdles at 1,630 and 1,648," it added in its market review.
Rakuten Trade, however, continued to hold out for a rebound despite the index sliding yesterday to a year-to-date low and mounting downward pressure on global equities.
"We are adamant that a quick rebound should occur anytime soon and expect the index to hover within the 1,535-1,550 range today," it said in a note.
On Bursa Malaysia, Nestle was down 48 sen to RM69.52 while PPB dropped 22 sne to RM11.28 and OETRINAS Danagan shed 22 sen to RM17.
Telekom fell 11 sen to RM6.70, Tenaga Nasional dropped 16 sen to RM13.38 and YTL Power lost seven sen to RM2.98.
Of actives, Sapura Energy
was flat at 3.5 sen, Genting Malaysia lost four sen to RM1.78 and Velesto was flat at 15.5 sen.
