KLCI Seen Consolidating Amid Global AI Jitters, Earnings Focus

KUALA LUMPUR, Nov 2 – The FBM KLCI is expected to consolidate within the 1,600-1,630 range today as investors balance cautious global sentiment against selective buying in local blue-chip stocks, analysts said.

Market participants are likely to remain focused on upcoming domestic catalysts, including Bank Negara Malaysia’s interest rate decision on Nov 5, the latest manufacturing PMI data and the ongoing third-quarter earnings season, which are expected to drive stock-specific trading activity.

The outlook follows a firmer close on Friday, when the benchmark FBM KLCI rose 0.28 per cent to 1,615.60 points, supported by month-end portfolio rebalancing and selective accumulation in plantation and financial services heavyweights.

Global AI Jitters

Despite the index’s gains, overall market breadth remained negative, with 648 decliners outnumbering 430 advancers, reflecting lingering caution among investors.

Technology stocks led losses, falling 2.57 per cent, as concerns over the sustainability of global artificial intelligence-related spending weighed on sentiment. The construction sector also declined 0.94 per cent.

In contrast, plantation counters outperformed, advancing 0.70 per cent amid stronger crude palm oil prices, while industrial products and services gained 0.55 per cent. Telecommunications and media stocks added 0.30 per cent.

Analysts said global risk appetite weakened after a sharp sell-off on Wall Street, where technology shares came under pressure following disappointing guidance from major players linked to the AI supply chain.

Nevertheless, they noted that continued institutional positioning ahead of the phased expansion of the FBM KLCI from 30 to 50 constituents could provide support for selected large-cap stocks.

From a technical perspective, the 1,600-point level remains key support, while 1,625 is the immediate resistance level for the benchmark index.

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