PETALING JAYA: The FBM KLCI is expected to remain under pressure in the near term as persistent selling in banking and data centre-related stocks weighs on market sentiment, according to Berjaya Research Sdn Bhd.
The benchmark index fell 12.51 points, or 0.77%, to close at 1,604.07 points on Tuesday, surrendering its intraday gains amid renewed selling pressure in selected banking and data centre-related counters.
Berjaya Research said market breadth remained negative, with 745 decliners against 395 gainers, reflecting widespread weakness across the local market.
Trading volume declined 23.34% to 2.79 billion shares from 3.64 billion shares previously, while trading value fell 20.55% to RM2.78 billion.
The research house said today that the local market had bucked a broader regional recovery, with heavy selling in YTL Power International Bhd, Public Bank Bhd and MR DIY Group (M) Bhd dragging the benchmark lower.
It expects the FBM KLCI to remain volatile in the interim, with the 1,600-point psychological level in focus.
Berjaya Research pegged immediate support at 1,600 points, followed by 1,580 points, while resistance levels were seen at 1,634 to 1,640 points.
It added that persistent selling pressure and weak market breadth could limit any meaningful recovery, while concerns over stickier inflation in the United States could further dampen investor risk appetite.
US consumer prices rose 0.4% month-on-month in October, exceeding economists’ expectations of 0.3%, while core inflation increased 0.3%.
The research house also cautioned that continued weakness in oil prices could weigh on oil and gas-related stocks on Bursa Malaysia.
Brent crude fell 1.17% to US$91.49 per barrel.