KLCI Faces Cautious Open as Oil Surge

The FBM KLCI is expected to open cautiously after suffering broad-based selling ahead of the Merdeka Day long weekend, with renewed geopolitical tensions and higher oil prices adding pressure to sentiment.

The benchmark index fell 0.91% to 1,725.88 on Friday, while market breadth was decisively negative, with 917 losers against 405 gainers. All 13 sector indices closed lower, led by Technology, which fell 3.65%, and Utilities, down 2.41%.

The sell-off came as investors reduced exposure ahead of the long weekend, while external concerns intensified following renewed US-Iran strikes near the Strait of Hormuz. The resulting surge in crude oil prices has heightened concerns over inflation and potential cost pressures.

Oil Surge

For the local market, earnings season is likely to remain a key driver of individual stock performance, helping investors focus on company-specific fundamentals amid broader macroeconomic uncertainty.

Technology counters will remain in focus following Nvidia’s strong earnings and bullish outlook for artificial intelligence demand. Energy stocks could also attract buying interest as crude prices remain elevated, while Plantation counters may benefit from firmer CPO prices.

Technically, the KLCI has slipped below its 9-day and 20-day moving averages, signalling weakening near-term momentum. The index remains below the 1,750–1,760 resistance zone.

A decisive break below 1,720 could strengthen the bearish bias and expose the index to further downside towards 1,700. On the upside, 1,755 is the immediate resistance, followed by 1,770–1,775. Watch the Oil Surge!

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