KUALA LUMPUR: Bursa Malaysia sank deeper into the red at midday on Tuesday, with the benchmark index hovering near the key 1,655 support level as selling pressure intensified across the broader market.
The FBM KLCI tumbled 13.63 points, or 0.82%, to 1,656.35, retreating from its intramorning high of 1,665.32.
Market breadth was negative, with 646 losers outpacing 312 gainers, while 459 counters were unchanged. Turnover stood at 1.83 billion shares worth RM1.18bil, with the broader market down 37%.
Apex Securities expects the FBM KLCI to remain under pressure within the 1,660 to 1,680 range until external pressures from elevated US Treasury yields and oil prices ease.
“Risk appetite has weakened, with the US 10-year Treasury yield at a 19-year high reviving Fed tightening concerns, although crude pared an early spike of more than 4% to settle only modestly higher on expectations of mediated US-Iran talks,” it said.
The brokerage said investors would focus on Wednesday’s US personal consumption expenditures (PCE) inflation data, Friday’s September non-farm payrolls and Micron’s results this week for further clues on inflation, the labour market and AI-driven chip demand.
Meanwhile, TA Securities said uncertainty surrounding Middle East tensions and persistent inflationary pressures would likely continue to cloud the outlook for the local market.
On the technical front, TA Securities pegged immediate support for the FBM KLCI at 1,655, followed by stronger support at 1,610 and 1,564. Immediate resistance is seen at 1,722, with tougher hurdles at 1,759 and 1,805.
It also advised investors to accumulate Maybank shares on weakness towards RM9.74 or RM9.27, with upside targets of RM10.96 and RM11.71.
For Sime Darby, it sees recovery potential towards RM2.67, with a breakout opening the way to RM2.82 and RM2.94, while support is seen at RM2.45 and RM2.19.
Among the top losers, Malaysian Pacific Industries
fell RM1.50 to RM40.70, while F&N shed 74 sen to RM21.48. United Plantations lost 28 sen to RM31.32, followed by Heineken and Allianz, which declined 22 sen and 18 sen to RM13.34 and RM20.92, respectively.
Gainers included Solarvest, which rose 28 sen to RM4.44, Ranhill Utilities, up 15 sen to RM3.34, and SCGB, which gained 14 sen to RM2.90. KLCC and PETRONAS Dagangan added 13 sen and 12 sen to RM8.48 and RM19.44, respectively.
