Negative sentiment may spill over to the local market with protectionism talk

The FBM KLCI continues to face pressure from ongoing foreign fund outflows, likely directed towards US markets due to stronger protectionism policies.

Negative sentiment

This could lead to negative sentiment spilling over to the local market, with the index finding some support around the 1,600 level. Sector-wise, the healthcare sector remains under pressure due to discussions on rising insurance premiums, while the technology sector may struggle following Nasdaq’s negative performance.

Technically, the FBM KLCI shows a doji candle pattern, with support at 1,600 and resistance at 1,625. Indicators are mixed, with the MACD above the Signal Line but the RSI below 50.

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Staff Writer

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