FBM KLCI Slips Despite Foreign Buying as Tech Rebound Lifts Broader Market

Malaysia’s benchmark index edged lower despite renewed foreign buying, while technology stocks rebounded strongly as investors balanced improving global sentiment against election uncertainty and technical weakness.

FBM KLCI Eyes Recovery

Malaysia’s stock market ended slightly lower on Monday as the FBM KLCI slipped 0.11% to 1,665.91, despite stronger market breadth and the return of foreign investors as net buyers. The benchmark index underperformed most regional peers, although improving investor sentiment supported gains across several sectors.

Technology stocks led the market with a 2.41% advance, recovering from recent selling pressure as global semiconductor and artificial intelligence-related shares rebounded. Industrial Products & Services and Utilities also posted gains, while Plantation and Transportation & Logistics ended lower.

Global markets recovered after last week’s weakness, with the Nasdaq Composite leading Wall Street higher as technology counters, including semiconductor companies, staged a strong comeback. Asian markets mostly advanced, reflecting improved risk appetite, although South Korea and Indonesia remained in negative territory.

Looking ahead, market sentiment is expected to stay cautious. Investors continue monitoring political developments ahead of Malaysia’s general election, even as resilient investment activity, Malaysia’s expanding role in regional AI infrastructure, and Bank Negara Malaysia’s efforts to support the ringgit provide longer-term support.

Technically, the FBM KLCI remains below key moving averages and the neckline of its Double Top pattern, indicating downside risks remain. Immediate resistance stands at 1,674 and 1,680, while support is seen between 1,640 and 1,620.