KUALA LUMPUR: The FBM KLCI fell below the 1,700 level on Monday as a surge in oil prices above the US$100 a barrel level and a potential escalation of the conflict in the Middle East sent global investors fleeing equities markets.
The benchmark index gapped lower at the start of trading to 1,699.13 points. By 9.04am, the index was down over 20 points or 1.17% to 1,697.94.
Apex Research noted that there were fears of a protracted regional war as US President Donald Trump suggested the possibility of expanding military strikes in Iran.
"Against this backdrop, markets may experience elevated volatility as investors assess the potential implications for global inflation and energy prices. While firmer crude prices could lend support to energy-related counters on Bursa Malaysia, broader market sentiment may remain cautious amid ongoing geopolitical uncertainty and currency fluctuations," said the research firm in its report.
Nevertheless, Apex said the FBM KLCI's technical outlook remained positive. Although near-term momentum remained weak as reflected by the negative MACD reading and subdued RSI levels, the prevailing uptrend is likely to remain intacts as along as the index sustains above the 1,685-1,690 support zone.
However, a decisive break below this level would weaken the technical structure and may signal a deeper corrective phase, it warned.
Amid the sharp selling, Maybank tumbled 18 sen to RM11.58, Nestle dropped RM3.60 to RM102.20 and Tenaga Nasional fell 20 sen to RM14.
PETRONAS Chemicals climbed RM1.03 to RM5.32, MISC added 16 sen to RM8.86 and Press Metal
climbed 10 sen to RM7.91.
Meanwhile, major markets across the region were not spared.
Japan's stock exchange opened to a bloodbath with the Nikkei slumping 5.5% to 31,788. South Korea's Kopsi dove over 7% to 5,179 as chipmaker Samsung Electronics fell 8.4% and sector rival SK Hynix slumpped 9.2%.
