KUALA LUMPUR: The FBM KLCI opened to strong selling pressure after the Merdeka-holiday weekend as oil prices spiked following fresh US-Iran strikes near the Strait of Hormuz.
Brent crude futures for October delivery rose past US$91 a barrel as reports of the first US strike on Iran since late July sent commodity prices surging.
Coupled with hawkish remarks by Federal Reserve chair Kevin Warsh at the Jackson Hole symposium, inflation concerns are sending traders to the sidelines.
Malaysia's benchmark stock index fell over 20 points to 1,705.52 in the first 30 minutes of trading, tracking the weak performance in Wall Street overnight.
Apex Securities noted in its technical commmentary the index has slipped below its nine- and -20 day moving averages for the first time during the recent recovery, signalling a loss of near-term momentum.
"A decisive break below 1,720 would reinforce the bearish bias and pave the way towards the 1,700 level. On the upside, 1,755 remains the immediate resistance, followed by the 1,770–1,775 region should stronger buying momentum emerge," it said.
However, the research firm expects the technology sector to remain in focus following Nvidia's blowout earnings and bullish AI demand outlook.
It was also positive on energy stocks given the surge in crude prices, while it also expects plantation stocks to attract interest amid firmer crude palm oil prices, with futures closing broadly higher on Friday.
Meanwhile, Zetrix AI remained under pressure, slipping 3.5 sne to 26 sen after hitting limit down last Friday. The share remained the top traded stock on Bursa Malaysia with over 768 million shares done at 9.25am.
HHRG rose one sen to 14 sen and Tanco was down one sen to 17.5 sen.
Among blue chips, bank shares were routed with Maybank dropping 14 sen to RM10.54, RHB shedding 38 sen to RM8.30, CIMB falling eight sne to RM7.88 and Public Bank sliding six sne to RM4.89.
Tenaga Nasional shed 34 sen to RM13.80 and, Nestle dropped RM1.24 to RM98.86 and Press Metal
slumped RM14 sne to RM7.86.
Headed the other direction, MISC surged 21 sen to RM8.13 while PETRONAS Chemicals gained three sen to RM4.28.
