KUALA LUMPUR: The FBM KLCI was little changed on Tuesday even as analysts expects investors to shift towards a more defensive stance amid the cautious near-term outlook.
At the open, the benchmark index fell a slight 2.97 points to 1,737.8, with investors holding firm to the previous day's closing price despite a retreat in US stocks.
Apex Securities said the near-term market outlook is expected to remain cautious and range-bound with a downside bias, as investors navigate escalating geopolitical tensions and a more restrictive policy backdrop.
"Heightened conflict involving Iran, including attacks on the United Arab Emirates and vessels near the Strait of Hormuz, has driven crude prices sharply higher, reinforcing inflationary pressures and weighing on risk sentiment," it said in a note.
At the time of writing, Brent crude futures for June delivery were priced at about US$114 a barrel.
In its technical reading, the research firm said the benchmark index broke out of its Symmetrical Triangle formation yesterday, suggesting further upside towards 1,777.
"However, a near-term pullback may occur today following the overnight weakness in US markets. Immediate support is seen at 1,722."
On Bursa Malaysia, Capital A fell one sen to 42 sen, leading trading volume with 5.85 million shares done. Itronic fell 0.5 sen to 20 sen and Zetrix AI shed one sen to 85 sen.
Among blue chips, IHH slid seven sen to RM880, Hong Leong Bank fell 12 sen to RM22.18 and Nestle dropped 80 sen to RM103.
