The FBM KLCI (-4.63\%) plummeted, dragged by the concern arising from US recession, further exacerbated by the sell-off in the Japanese stock market due to potential interest rate hikes by the BOJ.

The decline in lower liners was more severe as investors booked in recent profits. The Property, Technology, and Construction sectors led the losses, with their indices dropping by more than 9% respectively.

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Stock market plummets

Global markets extended their sell-down amidst concerns over recession fears and geopolitical tensions between Iran and Israel, following recent months of an uptrend.

“However, for the local market today, we anticipate some stability and bargain hunting to emerge from yesterday’s correction. This expectation is supported by a rebound in global stock market futures and a slight recovery from intraday losses on Wall Street, following better-than-expected US PMI Services data that helped ease panic.

“Traders might find opportunities in fundamentally strong stocks for bargain hunting after the recent sell-down. Despite this, we advise investors to remain cautious during the current market turmoil. While we maintain a positive long-term outlook for the local bourse, we advocate a cautious approach. Investors can gradually accumulate stocks that have dropped below their intrinsic value during this period of market volatility.”

    FBM KLCI Technical Review & Outlook

    Technical Commentary: The FBM KLCI formed a bearish candle and tanked towards the SMA200. Indicators stayed negative as the MACD Line fell below the zero level, while the RSI sank deeper below 50. Immediate resistance is located at 1,600. Support is envisaged around 1,580.

    Global Markets Review

    US stock markets sell-down remain unabated on fears of a recession, with the “fear gauge” CBOE Volatility Index jumping higher. Similarly, European markets led losses in the Technology and Energy sectors. Asian stock markets also faced significant declines, particularly in Japan, where the index experienced its greatest sell-off (-12.4%) since 1987.

    Staff Writer

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