KUALA LUMPUR: Market turbulence is expected to persist amid global markets' rout and ongoing results season, said Hong Leong Investment Bank Bhd (HLIB).
"Following the formation of Marubozu candle and breakdown below downtrend channel, The FBM KLCI is envisaged to retest lower supports near 1,500-1,522 before staging a technical rebound," HLIB said in its technical market report today.
In sync with global markets' rout and the ongoing listed firms' August results season coupled with potential margin calls, FBM KLCI may extend its downtrend.
"This is aligned with a seasonally weak month of Aug (average KLCI growth for 10 years/20 years: -1.1 per cent/-1.4 per cent)," the firm added.
Tracking the Wall Sreet and regional markets' slump, FBM KLCI dived 74.6 per cent or 4.6 per cent, the lowest since Covid 19 in March 2020) with all 30 component stocks taking a beating.
HLIB said after gapping down in the opening by 18 points,FBM KLCI had been pummelled 74.6 points to close at a low of 1,536.5 amid a resumption of heavy foreign selling.