KUALA LUMPUR: Bursa Malaysia is expected to remain in selling mode as escalating conflict in the Middle East keeps equity markets from rebounding.
After sharp losses over the last three trading sessions, the FBM KLCI was resting near the 1,700 support line, a further breakdown of which would affirm the market's downtrend.
At 9.03am, the key index was down 4.58 points to 1,695.96, tracking the negative performance on Wall Street's major indices.
The FBM KLCI is facing growing downward momentum after losing about 50 points over the past three trading days.
"Overall, the index remains within a downward channel, with further downside potentially towards 1,685. Any rebound, in our view, is likely to be short-lived, with immediate resistance at the 1,720–1,730 zone," said Apex Securities.
The research firm said energy is expected to remain in focus this week amid the escalation in hostilities in the Strait of Hormuz. Brent crude futures for November delivery have risen to over US$96 a barrel, a near six-week high.
Meanwhile, it said it expects further downside in the KL Finance Index as fund managers may begin positioning ahead of the FBM KLCI 50 transition, which will structurally dilute the weighting of financial stocks.
On the blue-chip index, there were declines in Hong Leong Bank, down 16 sne to RM23.54, Kuala Lumpur Kepong falling 20 sen to RM21.64 and Tenaga Nasional sliding six sen to RM13.70.
Press Metal
retraced 14 sen to RM7.87, PETRONAS Chemicals jumped 31 sen to RM4.38 and PPB climbed 18 sen to RM9.88.
Of actives, Focus was up 0.5 sen to one sen, Ingenieur rose 0.5 sen to 4.5 sen and Velesto was flat at 23 sen.
