KUALA LUMPUR: The FBM KLCI fell below the 1,600 psychological support as profit-taking intensified amid a pullback in US equities as investors lost their nerve over the sky-high valuations of equities.
US traders cashed out some of their profits overnight following remarks by Federal Reserve chair Jerome Powell that stocks were overvalued. Also weighing on sentiment, a highly anticipated US inflation report this week could prove a major setback to hopes over more aggressive rate cuts by the central bank, which has put investors on a more cautious footing.
