Bursa Malaysia on Tuesday ended the two-day winning streak in which it had climbed more than 25 points or 1.5 percent.
The Kuala Lumpur Composite Index now sits just above the 1,675-point plateau and it's looking at another soft start again on Wednesday.
According to Malacca Securities (MSSB) in a note today (Sept 4) the FBM KLCI (-0.09%) closed marginally lower, dragged down by selling pressure in the Telco & Media and Industrial Products & Services sectors, notably CDB (-10.0 sen) and PCHEM (-13.0 sen).
This performance mirrored the regional markets, which also struggled amid a lack of fresh catalysts.
The Day Ahead
The Bursa exchange ended on a mixed note as traders shifted their focus from heavyweights to small-cap and lower-liner stocks.
In the US, stock markets closed significantly lower, dragged down by Nvidia, which saw nearly 10% of its value, or USD 279 billion, wiped out in a single session.
Additionally, ISM manufacturing data came in at 47.2, indicating continued contraction in business activity for August.
Looking ahead, traders will be closely watching several jobs reports, with the non-farm payroll data for August set to be released on Friday.
In the commodity markets, MSSb noted that Brent oil dropped sharply, while gold prices continued to trade sideways around the USD2,500 mark.
CPO prices remained above the RM3,900 level.
Sector Focus: With negative sentiment prevailing in the US, they anticipated selling pressure in the local Technology sector.
However, MSSB said they see potential in sectors benefiting from a stronger ringgit, such as Consumer, Construction, Building Materials, and Utilities.
Additionally, they favoured stocks with strong fundamentals, growing earnings, and high dividend yields.
Bloomberg FBMKLCI Technical Outlook
The FBM KLCI index ended lower towards the 1,676 level.
However, the technical readings on the key index were positive with the MACD histogram forming another positive bar and the RSI trended above 50.
The resistance is envisaged around 1,691-1,696 and the support is set at 1,656-1,661.
