Investor caution is expected to persist ahead of the US presidential election

On Wednesday, the FBM KLCI dropped by 0.8%, reflecting broader regional declines, with only the Construction sector gaining at +0.5%. Technology and Plantation sectors led losses at -1.2% and -1.1%, respectively. In the global markets, US stocks fell sharply, with the Nasdaq down by 2.8% following disappointing earnings from Meta and Microsoft and a higher-than-expected PCE price index. European markets also experienced steep losses, and Asian markets mostly declined in line with global sentiment.

Outlook: Investor caution is expected to persist ahead of the US presidential election and upcoming US unemployment data. Local market volatility may continue, with the Technology sector likely to lead losses amid concerns over high AI costs and Wall Street’s recent performance. Lower-tier stocks may remain subdued due to the mid-week holiday.