The market sentiment is expected to remain subdued, influenced by Wall Street’s weak performance and a broad-based selloff in US Treasuries.
The FBM KLCI is likely to sustain its downtrend towards the 1,600 psychological level, with increased volatility potentially dragging lower-tier stocks further down. Investors are cautious, awaiting key US employment data, while foreign funds are expected to remain net sellers due to the absence of strong recovery catalysts.
Sector Focus: Weaker Ringgit
• The energy sector may face corrections as Brent crude oil prices hover near $77.3 per barrel.
• Export-oriented sectors like gloves, furniture, and technology might benefit from a weaker MYR against the USD, enhancing global competitiveness.
Technical Outlook
The FBM KLCI has slipped toward the middle Bollinger Band, with mixed technical indicators—MACD remains above the Signal Line, but RSI has dropped below 50. Resistance is seen at 1,645, with support around 1,600.
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