FBM KLCI Pressured as Global Tech Sell-Off Dampens Sentiment

The FBM KLCI is expected to come under pressure following a sharp overnight decline in global technology stocks, despite extending its winning streak for a third consecutive session on Thursday. The benchmark index gained 0.37% to close at 1,608.14, outperforming most regional markets amid buying interest in heavyweight stocks.

However, overall market breadth remained weak, with decliners significantly outnumbering gainers, signalling cautious investor sentiment. Technology counters were among the biggest laggards, falling 1.85%, while energy stocks led gains as crude oil prices surged.

Market sentiment is likely to remain fragile after Wall Street’s technology-driven sell-off, triggered by renewed concerns over the sustainability of heavy artificial intelligence investments.

Global Tech

The decline in global semiconductor and AI-related stocks could weigh on Malaysian technology and electronics counters, which have recently enjoyed a recovery.

Analysts believe energy-related stocks may continue to attract interest as rising geopolitical tensions in the Middle East push oil prices higher. Construction companies linked to data centre developments may also remain in focus amid expectations of further project awards.

Technically, the FBM KLCI remains below key moving averages, suggesting the broader downtrend remains intact. Immediate resistance is seen at 1,610 points, while support stands at 1,600 points.

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