Bank Selling Drags Bursa to Fifth Straight Loss

KUALA LUMPUR, Sept 30, 2026, The FBM KLCI fell 1.56% to 1,643.96 on Tuesday, marking its fifth consecutive decline as heavy selling in banking stocks tracked Wall Street’s overnight weakness. Elevated US bond yields and higher oil prices further dampened sentiment, with market breadth negative as 688 decliners outpaced 412 advancers.

The Financial Services index slumped 1.72%, leading losses alongside Transportation (-1.47%) and Property (-1.44%). Only Energy (+0.80%) and REIT (+0.51%) managed gains. Analysts noted fragile sentiment as the US 10-year Treasury yield hovered at its highest since 2007, while US consumer confidence fell to a 12-year low.

bank selling

Technically, the KLCI broke below the 1,660 support level and now tests the lower boundary of its descending trend channel around 1,640. Immediate support lies at 1,640, with further downside risk to 1,625 if selling persists. A sustained rebound above 1,660 would be the first sign of stabilisation, with resistance at 1,680–1,685.

Investors are expected to trade cautiously ahead of US PCE inflation data and September non-farm payrolls, with any easing in US yields potentially sparking bargain hunting in beaten-down banking heavyweights.

#businessnews