The FBM KLCI is expected to maintain a cautious-to-negative bias this week as heightened geopolitical risks, oil supply concerns and technical weakness weigh on investor sentiment.
The benchmark index slipped 0.08% to 1,735.75 on Friday, extending its decline for a second consecutive session. Despite the pullback, market breadth remained positive, with 577 gainers against 567 decliners. Trading volume stood at about 3.56 billion units worth RM3.47 billion.
On a weekly basis, however, the KLCI gained 0.63%, or 10.85 points, from the previous week’s close of 1,724.90. Utilities and Plantation counters outperformed, rising 1.76% and 0.81% respectively, while Telecommunications and Media and Technology declined 0.92% and 0.79%.
Geopolitical Risks
Global markets ended broadly higher, supported by a surprisingly weak US July jobs report that reduced expectations for near-term Federal Reserve tightening. The Dow Jones rose 0.28%, while the S&P 500 gained 0.62% to another record close and the Nasdaq advanced 1.3%.
However, geopolitical developments remain a major source of uncertainty. Tensions surrounding the Strait of Hormuz and the unresolved US-Iran situation could keep oil prices volatile and increase cost pressures for import-dependent and transport-related industries.
From a technical perspective, the KLCI remains within a downward-sloping channel after peaking in January. Although the index staged a strong rebound from its July low, the recovery has stalled near the channel’s upper resistance. The recent Dark Cloud Cover candlestick formation also points to renewed bearish pressure.
Immediate support is seen at 1,735, followed by 1,700 if profit-taking intensifies. Resistance remains firm at the 1,760–1,770 zone.
Utilities and Plantation stocks could continue attracting defensive interest, while Telecommunications and Media and Technology counters may remain under pressure.
Source: Apex
Leave a Reply
You must be logged in to post a comment.