KUALA LUMPUR: Hwang DBS Vickers research (HDBSVR) expects Malaysian equities to face selling pressure on Tuesday and the FBM KLCI is expected to slip below the crucial 1,800 level.
It said investors will probably see red amid the persisting sell-off in global equities following the plunge by regional bourses when Bursa Malaysia was closed on Monday.
Overnight, major US stock bellwethers tumbled between 2.1% and 2.6% at the closing bell on the back of signs that the global economic recovery momentum is threatened by slowing manufacturing indicators.
“The poor external vibes will inevitably put pressures on our local equities today. The KLCI is set to drop beneath the psychological mark of 1,800 to test the next support level of 1,780 ahead.
“Likely to push down the bellwether today are index heavyweights like Tenaga, Genting Bhd and Genting Malaysia following the sudden jump in their share prices just before the mid-day closing last Thursday.
“Separately, Bina Puri shares may also take a hit after a local daily reported its joint venture unit had missed the end-January deadline to hand over the main terminal of klia2,” said HDBSVR.