KUALA LUMPUR: Malaysia's stock benchmark dove below the 1,600 key support at the starting bell as a sharp decline in Wall Street stocks weighed on the already jittery mood of investors awaiting the upcoming US presidential election.
The FBM KLCI shed more than 10 points to 1,591.06, below the psychological support and 200-day simple moving average to signal strong bearish sentiment.
Overnight, the major Wall Street indices tumbled on disappointing corporate guidance, especially by tech giants Microsoft and Meta Platforms.
The pullback in Big Tech triggered a 2.76% slump in the Nasdaq as investors wondered if the growth expectations of these companies had far surpassed reality.
On Bursa Malaysia, banking heavyweights led the sell-off, with CIMB falling 15 sen to RM7.84, Hong Leong Bank dropping 24 sen RM20.26, Maybank sliding four sen to RM10.46 and RHB shedding four sen to RM6.37.
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dove seven sen to RM4.72, while Tenaga Nasional slid six sen ot RM13.98 and Telekom dropped five sen to RM6.44.
Meanwhile, the top actives were Classita up one sen to 4.5 sen, Silver Ridge unchanged at 48 sen and Elridge Energy up one sen to 45 sen.
Apex Securities Research said in a note that market sentiment remains subdued as investors retreat from stock markets ahead of the US presidential election, while the local bourse is likely to be influenced by negative spillovers from the weak performance on Wall Street.
"Caution is advised, as volatility may persist until the election results are announced.
"Meanwhile, the lower liners may remain lackluster as most of the investors are still on the sidelines due to the mid-week festive break," it said.
Another broker, Malacca Securities Research, said the release of lower-than-expected weekly US jobless claims, suggesting a robust labour market, and the higher core personal consumption expenditures index could influence the Federal Reserve's decision in the upcoming Federal Open Market Committee meeting.
"Investors are now looking toward key economic data, including US non-farm payrolls and ISM manufacturing, due later tonight," said the research firm.
