Investors should focus on defensive sectors like REITs and financials

The FBM KLCI is expected to stay under pressure due to persistent foreign fund outflows and weak market sentiment. Following Wall Street’s decline, negative sentiment may spill over, potentially extending the pullback.

The index is expected to trade between 1,580 and 1,590 today, though bargain hunting could emerge as Malaysian stocks remain attractively valued.

Sector Focus

Investors should focus on defensive sectors like REITs and financials, which offer stable dividend yields. The real estate sector is also attractive, supported by new projects and green initiatives.

Technical Outlook

The FBM KLCI formed a hammer candle, recovering most intraday losses, but the downward bias may persist. The MACD remains above the Signal Line, while RSI has dipped below 50. Key resistance is at 1,630, with support at 1,570.

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