Advertisement
Latest Anti-Rust Guarantee for Coastal Projects: GennHann Outlines Quality Risks of “Fake 304” in Malaysia’s Humid Climate
FBM KLCI

Market sell-off on global stock market weakness

Domestically, we anticipate that the local bourse will continue to extend the negative momentum seen last week, following the sell-off on Wall Street.

By · August 5, 2024 · 2 min read

Foreign Outflows, bargain hunting, bargain hunters, bursa holds firm, mara, foreign investors, fbm klci, index, bargain-hunting, fbm klci, market, local institutions, bursa eipo, buying interests, malaysia market, cpo futures, sentiment, market sentiment, blackrock, feds, Bursa's gains, market trends, profit-taking, bursa malaysia, API Gateway, market sentiment, ringgit appreciates, Malaysian stocks, Bursa's strong Q1 performance, Vitrox, investor confidence, bullish market, political activist, stock market, FBM KLCI, flat, foreign funds bursa

The FBM KLCI (-0.8%) experienced a sell-off due to broad global stock market weakness, mirroring Wall Street’s performance amidst concerns about economic slowdown and downbeat earnings. Lower liners plummeted as funds pulled out after an uptrend since April. The Construction (-5.0%) and Technology (-4.6%) sectors experienced the greatest sell-down among all sectors.

Read more Business News

US Unemployment Rises to 4.3%, Job Growth Slows Significantly

Market Outlook

On the global stage, markets are concern that the Fed may act too slowly in response to potential recession risks, highlighted by weaker-than-expected unemployment data, says Apex.

“Domestically, we anticipate that the local bourse will continue to extend the negative momentum seen last week, following the sell-off on Wall Street. However, we foresee a rotation of funds from lower liners to blue-chip and index stocks, and we favor the financial sector and REITs as safe havens during the current global market volatility. Key economic focuses for the week will include China’s PMI, EU retail sales, and some Malaysian economic data.

“We remain positive about the outlook longer term for the local bourse due to active development in the country and the strengthening of the ringgit, despite the short-term sentiment being affected by Wall Street’s performance.”

    FBM KLCI Technical Review & Outlook

    Technical Commentary: The FBM KLCI took another step back as the key index slipped below SMA50. Indicators turned negative as the MACD Line hovered below the Signal Line, while the RSI tripped below 50. The downward bias consolidation may extend with immediate resistance located at 1,650. Support is envisaged around 1,580.

      Global Markets Review

      US stock markets experienced a two-day sell-off last Friday, driven by disappointing corporate quarterly results and a softer-than-anticipated nonfarm payrolls report, which raised recession concerns. European stock markets mirrored this trend, with key indices closing 3% lower. Asian stock markets also saw heavy sell-offs, led by Japan’s Nikkei, which sank -5.8%.

      Leave a Reply

      Related stories