FBM KLCI slips in start of August trading, crude futures tumble 7%


KUALA LUMPUR: The FBM KLCI failed to extend its gains despite the strong earnings in US technology bellwethers Microsoft and Amazon last Friday, which shored up sentiment in tech shares.

The benchmark index was down 4.4 points to 1,720.86 at 9.06am with steep falls in PETRONAS Chemicals, down 16 sen to to RM4.62, and Press Metal, shedding to RM7.87.

Brent crude futures for September delivery were down nearly 7% to about US$84 a barrel after US President Donald Trump called of further strikes on Iran in an attempt to broker a fresh peace deal.

TA Securities noted that investor snetiment may remains cautious as market pariticpants assess the domestic implications of the Negeri Sembilan state election held over the weekend. 

However, attention will subsequently shift to the release of the US employment report later in the week, which is expected to provide further clues on the Federal Reserve's monetary policy outlook and the direction of interest rates, it said in its market outlook.

On its technical reading, the research firm said key overhead resistance for the index stays at the 123.6%FP (1,758),

followed by tougher upside hurdles at the 138.2%FP (1,804) and 150%FP

(1,841) ahead. 

"On the downside, immediate support is pegged at the100%FP (1,684), with stronger support coming from the June 2026 low (1,655) and 76.4%FR (1,610)."

Among the day's leading actives, UMS Integration jumped 17 sen to RM7.52, KESM rose 15 sen to RM4.47 and MPI climbed 12 sen to RM46.12.

There was also active buying activity in heavyweight bank shares, including Ambank up eight sen to RM8.07 and RHB adding seven sen to RM8.62.

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