Rate Jitters and Iran Deadlock Keep Bursa Under Pressure

KUALA LUMPUR, Sept 29, 2026, The FBM KLCI slipped 0.10% to 1,670.02 on Monday, marking its fourth straight decline as persistent foreign-fund selling weighed on sentiment. Early support from the US-China tariff reduction agreement faded after President Trump rejected Iran’s Strait of Hormuz proposal, reviving geopolitical concerns and keeping US bond yields elevated.

Market breadth was decisively negative, with 748 decliners against 388 advancers. The Health Care (-2.20%), Technology (-1.86%) and Utilities (-1.58%) indices led losses, while Transportation (+0.51%), Financial Services (+0.24%) and Construction (+0.21%) provided modest gains.

Rate Jitters

Analysts noted that risk appetite remains weak, with the US 10-year Treasury yield at a 19-year high of 5.20% fueling fears of further Fed tightening. Crude oil pared an early spike of more than 4% to settle only modestly higher, capping energy sentiment.

Technical indicators show the KLCI trading below EMA9, EMA20, EMA120 and SMA200, reflecting caution. Immediate support lies at 1,660, while resistance is seen at 1,680–1,685. A sustained move above 1,700 would signal improving momentum. Until external yield and oil pressures ease, the index is expected to consolidate within the 1,660–1,680 range.

#businessnews