KUALA LUMPUR: The FBM KLCI is extending its decline amid a lack of clarity in the Middle East situation, even as the domestic corporate earnings period enters its closing days.
At the open, the benchmark index was down 1.73 points to 1,706.77. Leading laggards included Nestle falling RM1.40 to RM94.40, IHH sliding nine sen to RM8.87 and Tenaga Nasional falling 10 sen to RM14.36.
According to TA Securities, the global sentiment was turning cautiously positive after crude oil prices fell 7.6% on Monday amid signs of progress in US-Iran negotiations.
However, uncertainty surrounding the negotiations remained elevated while investors are also expected to remain cautious ahead of the upcoming US core PCE data as stronger-than-expected US inflation could reduce expectations for near-term Federal Reserve rate cuts.
Meanwhile, the research firm expects the FBM KLCI to trade firmer on Tuesday in line with improved regional sentiment and lower oil prices.
"Investor attention is also likely to remain focused on upcoming first-quarter earnings from major Malaysian banks for clearer signals on domestic credit growth, margin resilience and consumer spending trends, while the ongoing AI-driven rally in global equities could continue to support technology-related stocks," it said in its market outlook.
It added the index's positive trend remains intact despite retreating in recent session amid cautious market sentiment.
"From a technical standpoint, the recent pullback and formation of several bearish candlesticks may pave the way for a Bullish Harami pattern, suggesting that selling pressure could be easing. This may provide an early signal of a potential near-term rebound in the benchmark index."
