Market sentiment remains fragile following heavy profit-taking and margin call activities in small and mid-cap stocks.

The sharp decline in Wall Street is expected to spill over to the local market, with selling pressure likely to persist amid concerns over US trade policies, economic outlook, and foreign fund outflows.

Investors are cautious ahead of the US inflation report, which could influence the Federal Reserve’s next move.

Sector Focus:

A defensive approach is recommended, favoring REITs and fundamentally strong blue-chip stocks in the Financial and Consumer sectors with minimal foreign trade risks.

FBMKLCI Technical Outlook:

The index declined for the fourth consecutive session, forming another gap down. Technical indicators remain negative, with the MACD below the Signal Line and RSI nearing oversold territory. Key resistance is at 1,570, while support levels are 1,530 and 1,500.

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