KUALA LUMPUR: Investors are growing increasingly wary over the lack of progress in the Middle East conflict, sending equities prices lower even as the US threatened to escalate attacks on Iran should the Strait of Hormuz not be reopened.
"Global markets remain highly sensitive to developments in the Middle East crisis, where geopolitical uncertainty is fueling volatility in oil and other commodity prices. Risk appetite has also weakened further amid persistent inflationary pressures and a dimmer economic outlook," said TA Securities in its market report.
The research firm also noted the technical indicators on the FBM KLCI have deteriorated, pointing to a likely consolidation with a downward bias this week.
"Nevertheless, sharp declines may present bargain-hunting opportunities, with recovery potential once oversold conditions emerge," it added.
"Immediate support for the index is anchored at the January 2026 low (1,666), with stronger support seen at the 76.4%FR (1,610), followed by the 61.8%FR (1,564). Meanwhile, immediate resistance is maintained at the 123.6%FP (1,759), with tougher upside hurdles at the 138.2%FP (1,804) and 150%FP (1,841) ahead."
At the open, the FBM KLCI dipped 1.18 points to 1,694.32, reflecting the soft sentiment that has brought the blue-chip index below the 1,700-point psychological support.
Shares that weighed included Sunway, down seven sen to RM4.96, IHH falling six sen to RM8.90 and Press Metal
shaving six sen toRM7.88.
Brent crude futures breached the US$110 a barrel level after rising 1.45%, lending upside momentum to oil-related stocks. PETRONAS Chemicals jumped 15 sen to RM6.05.
In active stocks, Malaysian Aviation Group was flat at 16.5 sen, VS Industry unchanged at 18 sne and TWL dropped 0.4 sen to two sen.
