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KUALA LUMPUR: The domestic market tracked the negative performance on Wall Street overnight although it is expected to remain range-bound amid the ongoing US corporate earnings period.
At 9am, the benchmark FBM KLCI was down 3.22 points to 1,421.97.
Investors on Wall Street were shaken by a steep drop in First Republic Bank’s deposits, reigniting fears of a banking crisis.
The major US indices fell between 1% and 2% as investors sold off on expectation that upcoming corporate earnings results will be disappointing.
However, US futures were supported by the after-hours announcements by Microsoft and Alphabet, which showed resilience in the tech giants’ earnings.
Back home, TA Securities Research anticipates another day of sideways trading on Bursa Malaysia, in contrast to the flurry of activity in US markets.
“The local market should trade sideways pending fresh local catalysts, as investors remain cautious amid the US earnings season and ahead of keenly awaited US monetary policy meeting,” said the research firm in its daily commentary.
“Key index supports remain the recent low of 1,391 and last October’s low of 1,372, while immediate overhead resistance stays at 1,450, followed by the leveling 200-day moving average at 1,457, with 1,480 and 1,500 acting as stronger resistance levels,” it added.
Bursa Malaysia’s technology index shed 0.5% to 61.08 following the pullback on the Nasdaq.
MPI dropped 22 sen to RM28.64, Vitrox slid eight sen to RM7.85 and Hextar Technologies shed 52 sen to RM22.90.
There was also a retreat in bank stocks following news of First Republic’s liquidity woes. Maybank dropped three sen to RM8.62, Public Bank shed two sen to RM3.91 and CIMB lost six sen to RM5.10.
On the actives list, Star Media surged 9.5 sen to 60.5 sen following the emergence of The Edge Communications owner Tan Sri Tong Kooi Ong as a substantial shareholder in the company.
Other actives included CFM up 0.5 sen to 27 sen and Salute rising six sen to RM1.11.
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