Selective Buying Emerges Despite Cautious Sentiment

KUALA LUMPUR, Nov 12 — Malaysian equities remained under pressure on Wednesday as selective buying emerged despite persistent selling in banking heavyweights dragged the benchmark FBM KLCI below the key 1,600-point level, although improved market breadth signalled continued investor interest in selected sectors.

The FBM KLCI declined 0.55 per cent to close at 1,595.19, extending its losing streak to a third consecutive session. Despite the benchmark’s weakness, broader market sentiment showed signs of resilience, with gainers outnumbering losers by 686 to 427, while 474 counters ended unchanged.

Technology stocks led sectoral gains, advancing 2.92 per cent, followed by Construction, which rose 1.37 per cent, and Industrial Products and Services, up 1.19 per cent. In contrast, Financial Services fell 1.35 per cent, making it the worst-performing sector of the day, while REITs and Property stocks also ended lower.

Selective buying

The cautious tone in Kuala Lumpur contrasted with stronger performances across major global markets. Wall Street rebounded after encouraging earnings from artificial intelligence cloud-computing firm CoreWeave and renewed buying interest in semiconductor giant Nvidia lifted investor sentiment. The Dow Jones Industrial Average gained 0.49 per cent, while the S&P 500 and Nasdaq Composite rose 1.31 per cent and 1.60 per cent respectively.

European and Asian markets also advanced, driven largely by technology and semiconductor-related counters. Investors responded positively to strong corporate earnings and a broader recovery in global technology shares.

Looking ahead, market participants are expected to remain selective as attention shifts to the domestic third-quarter earnings season. Analysts believe company results and forward guidance will play a larger role in determining stock performance amid an uncertain external environment.

Investor sentiment

Investor sentiment may continue to be influenced by expectations surrounding United States monetary policy, particularly after stronger-than-expected inflation data reinforced concerns that the Federal Reserve could tighten policy further. Market attention is now turning to the upcoming US Producer Price Index report, a key indicator ahead of the December Federal Open Market Committee meeting.

On the technical front, the FBM KLCI remains under pressure after breaching the psychological 1,600-point mark. Analysts see immediate resistance between 1,620 and 1,630 points, while support is located at 1,580, with further downside risk towards 1,550 if selling momentum persists. APEX

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