KLCI to trend lower after overnight plunge on Wall Street

KUALA LUMPUR: BIMB Securities Research expects Malaysian equities to come under some selling pressure after the overnight fall on Wall Street.

The research house said on Tuesday Wall Street ended sharply lower triggered by a renewed plunge in crude oil prices and surging dollar.

The DJIA and S&P500 fell 1.86% and 1.83% respectively to end at 17,501.65 and 2,020.58 respectively.

In Europe, stocks tumbled due to the falling oil price and political uncertainty in Greece. In Asia, key indices ended mostly lower as well.

“Back home, the FBMKLCI ended sharply lower, losing 16.15 points or 0.92% to 1,736.62 with heavy selling on O&G counters.

“Trading participation saw net selling from foreign institutions while local institutions and retail were net buyers.

“We reckon the local market to trend lower today as the selling on O&G stocks may continue following crude oil futures hitting a 5 ½ year low. Expect to see immediate support at 1,730/25,” it said.

Its data showed foreign funds were net sellers on Monday at -RM123.5mil.

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