FBM KLCI faces downward pressure from geopolitical risks

The FBM KLCI is facing downward pressure and a cautious outlook due to heightened geopolitical risks and volatility in crude oil prices. The benchmark index has experienced a series of losses, recently sitting near the 1,730-point level.

Market sentiment is being negatively impacted by tensions surrounding the Strait of Hormuz and the ongoing US-Iran situation, which have contributed to spikes in oil prices. These developments increase cost pressures for transport-related and import-dependent industries.

While utilities and plantation sectors have shown some defensive strength, other sectors such as telecommunications and technology have faced declines. Technical indicators suggest renewed bearish pressure, with immediate support levels identified at 1,735 and 1,700.