The FBM KLCI fell to almost the 1,470 level as profit taking activities continued.
"Nonetheless, we reckon buying activities to emerge anytime soon as recent sell-down seems unjustified as the latest easing of Covid restrictions in Shanghai and Hangzhou may continue to support regional markets.
"Therefore, we expect the index to rebound and hover within the 1,470-1,490 range today despite the downturn on Wall Street overnight. Meanwhile, special draws for 4D to revert to 8 from 22 next year may see some headwinds for the NFOs (Number Forecast Operators) today.
"FBM KLCI ended lower despite the positive regional performance as investors have shifted their interests in smaller cap stocks.
"The benchmark index lost 0.69% or 10.24 points to end at 1,471.56 with losers led by NESTLE, TENAGA and PETGAS. Nonetheless, market breadth was positive with 524 gainers against 486 losers while 392 counters remain unchanged. Total volume stood at 3.99bn shares valued at RM2.07bn," says Rakuten Trade.
Regional Versus Bursa
Key regional indices closed broadly higher thanks to the easing of Covid curbs in Shanghai and Hangzhou. Nikkei 225 and STI advanced 0.15% and 0.26% to end at 27,820.40 and 3,267.54 respectively. Meanwhile, HSI and SHCOMP surged by 4.51% and 1.76% to close at 19,518.29 and 3,211.81 respectively.
Wall Street slumped on worries of further Federal Reserves’ tightening. The DJIA fell by 1.40% to finish at 33,947.10. S&P500 and Nasdaq tumbled 1.79% and 1.93% lower to 3,998.84 and 11,239.94 respectively.
"Wall Street tumbled as fears that the Federal Reserves will continue to be aggressive with rate hikes arose following a stronger than expected economic data. As a result, the DJI Average lost 483 points while the Nasdaq declined by 222 points as the US 10-year yield inched higher to 3.58%," says Rakuten Trade.