FBM KLCI hits 11-month low as banking shares fall
The benchmark's year-to-date loss reached 66.15 points or 3.94%, with foreign selling and elevated oil prices weighing on sentiment.
Malaysia's benchmark share index dropped 19.39 points or 1.19% to 1,613.96 at the midday break on Oct 7, reaching an 11-month low. Continued selling by foreign investors and caution over elevated oil prices contributed to the decline.
Banking shares were among the stocks dragging down the FBM KLCI. The Bursa Malaysia Financial Services Index also reached an 11-month low; its coverage includes banks, insurers and stockbrokers.
Hong Leong Investment Bank (HLIB) said the benchmark had moved into bearish territory after slipping below its support range of 1,655-1,667 points. The bank saw no clear indication of a reversal, noting that the index was trading beneath all its key moving averages.
Bloomberg data showed that 11 of the index's 30 constituents remained positive year-to-date. Among those holding steadier positions were PETRONAS Chemicals Group Bhd, Telekom Malaysia Bhd and Gamuda Bhd.
Separately, Apex Securities said Budget 2027 could support the benchmark by clarifying fiscal priorities, infrastructure expenditure and measures for domestic consumption. However, it said that would not yet be sufficient to prompt a re-rating.
