Oversold KLCI Seen Rebounding on Improved Global Risk

KUALA LUMPUR, Oct 27 — The FBM KLCI is expected to find support in the near term after recent selling pressure pushed the benchmark index into oversold territory, with improving global risk sentiment providing a potential catalyst for a rebound.

The index fell 0.45 per cent to close at 1,604.36, dragged lower by weakness in utilities and banking heavyweights amid thin trading volume and softer regional market performance. Despite the decline, market breadth remained positive, with gainers outnumbering losers 549 to 514.

Energy, Technology and Telecommunication & Media sectors led advances, reflecting ongoing investor interest in growth-oriented counters.

Oversold KLCI

Market observers said sentiment could improve following a renewed global rally in technology stocks, although investors remain cautious ahead of key US corporate earnings and the Federal Reserve’s policy decision.

Technically, the FBM KLCI remains below its short- and long-term moving averages, indicating the broader downtrend is still intact. Immediate resistance is seen at 1,610, followed by 1,625, while support stands at 1,600.

Technology stocks are expected to remain in focus, while utilities and financial services may continue to face pressure following recent heavyweight-led selling.

#businessnews