KUALA LUMPUR: The FBM KLCI extended its decline at midday, putting the benchmark index on track for its fourth consecutive session of losses as selling pressure gripped the broader market.
The market barometer fell 11.19 points, or 0.70%, to 1,584.00, recovering slightly from an intra-morning low of 1,583.90.
Broad-based selling weighed on the market, with 616 losers more than doubling the 269 gainers, while 434 counters were unchanged.
Trading volume stood at 1.72 billion shares worth RM962.5mil.
“We expect the FBM KLCI to remain cautious in the near term amid persistent global interest rate concerns, as stronger-than-expected US inflation has reinforced expectations of a Fed rate hike in December, potentially limiting foreign fund inflows into emerging markets,” Apex Securities said.
The brokerage said investors would be closely watching the upcoming US Producer Price Index, the final key inflation indicator ahead of the Fed's December policy meeting.
On the domestic front, investors are expected to remain selective ahead of the third-quarter earnings season, with corporate results and management guidance driving stock-specific movements. The Melaka state election on Nov 14 could also add to near-term uncertainty.
Meanwhile, market participants may begin positioning ahead of the November market-capitalisation cut-off for the 20 additional FBM KLCI constituents, as the index prepares to expand from 30 to 50 stocks in phases beginning Dec 21.
TA Securities said blue chips were expected to trade cautiously as renewed concerns over global inflation and domestic political uncertainties weighed on investor sentiment.
It pegged immediate support for the FBM KLCI at 1,564, followed by stronger support levels at 1,527 and 1,490.
On the upside, immediate resistance is seen at 1,659, followed by the psychological 1,700 level and 1,759.
Among the decliners, Nestle fell 74 sen to RM94.80, F&N shed 48 sen to RM20.06, Allianz declined 46 sen to RM19.14 and Batu Kawan lost 40 sen to RM19.
Tenaga Nasional slipped 22 sen to RM12.74, while PETRONAS Dagangan eased 16 sen to RM19.36.
In contrast, United Plantations led the gainers, rising 98 sen to RM31.22, followed by Heineken Malaysia
, which gained 36 sen to RM13.68.
Malaysian Pacific Industries added 22 sen to RM38.52, Hong Leong Financial Group climbed 18 sen to RM17.66 and MISC advanced 17 sen to RM7.87.
MMAG was the most actively traded counter, with 356.2 million shares changing hands. The stock rose 12.5%, or half a sen, to 4.5 sen following the lifting of the freeze on its bank accounts.
