KUALA LUMPUR: Local equities are expected to remain under selling pressure following a plunge on Wall Street overnight as talks over the US debt ceiling stalled ahead of the deadline.
Fitch Ratings placed US credit on rating watch negative as it remains uncertain if negotiations over the debt ceiling will be resolved before a hard deadline on June 1.
At the opening bell, Malaysia’s benchmark FBM KLCI was down 0.68 points to 1,408.94, with investors staying jittery after three consecutive days of decline on the index.
TA Securities Research expects stocks to continue drifting lower due to worries over the US debt ceiling talks even as the peak corporate results period continues with a raft announcements scheduled over the next few days.
“Immediate index support stays at the 1,400 psychological level, while key chart supports are from the recent low of 1,391 and last October’s low of 1,372.
“Immediate overhead resistance remains at 1,450, with the leveling 200-day moving average at 1,456, and 1,480 then 1,500 acting as stronger resistance levels,” said the research firm in a note.
Plantations stocks, which have come under selling pressure, continued to lose weighton the FBM KLCI>
Sime Darby Plantation dropped six sen to RM4.35, Kuala Lumpur Kepong shaved 10 sen to RM22.44 and IOI slid four sen to RM3.94.
Bank stocks were mixed with Maybank rising five sen to RM8.61, CIMB gaining one sen to RM4.99 and Hong Leong Bank falling six sen to RM19.42.
Top actively traded counters included Parkson up 2.5 sen ot 17.5 sen, Bahvest gaining 0.5 sen to 19.5 sen and Tanco rising 0.5 sen to 55.5 sen.
– The Star