KUALA LUMPUR: The FBM KLCI lost its footing in the early session, missing out on a regional market rebound after a tech rout that briefly shook investors' confidence in AI stocks.
Malaysia's main index shed 7.03 points to a three-week low of 1,675.1, which could be a critical technical support for the market barometer.
"After the recent sharp decline, the index is now testing the neckline of a Double Top pattern around the 1,675 level, signalling broad bearish momentum," said Apex Securities in its technical reading.
"A decisive break below the neckline support could confirm the bearish reversal pattern and trigger further downside pressure, potentially leading to a deeper corrective phase."
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weighed on the market, shedding 43 sen to RM7.86 while PETRONAS Chemicals dropped 15 sen to RM3.95 after oil prices retraced to pre-Iran war levels at about US$72 a barrel.
Other leading decliners included MISC falling 12 sen to RM7.98 and IOI Properties dropping seven sen to RM4.03.
The broader market has also been decisively negative with 513 declining issues outnumbering 399 gainers. The morning trading turnover was 1.57 billion shares valued at RM1.1bil.
The local technology sector was seen extending its rebound by 1.64%, although it remains negative for the week given the deep slump over the Monday and Tuesday sessions.
Utitilies stocks were also bouncing back after three days of losses, putting on 0.94%.
However, on the losing end of things, plantations dropped 0.97%, healthcare shed 0.88%, property lost 0.78%, energy dropped 0.49%, and financial services slipped 0.1%.
A tech rebound was shoring up markets across Asia as strong growth projections from Micron brought investors back into AI-related stocks.
South Korea's Kospi gained 5.63% to 8,949, erasing most of the losses made during the rout earlier this week.
Japan's Nikkei gained 3.91% to 71,887 and Taiwan's Taiex gained 0.9% to 46,458.
In China, the Shanghai Composite index rose 0.36% to 4,126 and the CSI 300 climbed 1.61% to 5,022.
Hong Kong's Hang Seng shaved 1.37% to 23,090 after Trip.com reported dismal earnings that saw the share plunge over 10%. Alibaba dropped 4.23% while Tencent fell 1.26%.
