KUALA LUMPUR: Malaysian benchmark stock index slid back to the 1,600-point level in early trade as the plunge in US markets overnight triggered profit-taking in an overbought market.
US equities prices dropped sharply overnight on the back of rising tensions between Russia and the international community as the parties inched closer towards conflict in Ukraine.
The major indices shed between 1.8% and 2.9% as the threat of war further compounded the soft sentiment triggered by the prospect of higher interest rates.
At 9.05am, the FBM KLCI had slipped 5.22 points to 1,599.8, descending below the psychological support.
TA Securities Research said in a report that profit-taking consolidation was likely to ensue given the overbought momentum sustained by the recent rally, with underlying caution over potentially more aggressive US interest rate hikes and elevated UN-Russia geopolitical tensions undermining trading sentiment.
"Profit-taking resistance should cap near-term upside towards 1,620, with subsequent tougher hurdles seen at 1,640 and 1,680.
"Immediate support is retained at 1,580, with 1,550, 1,520 and the 1,500 psychological level as stronger supports," said the research firm.
Bank counters were seen weighing on the FBM KLCI, including Maybank down three sen to R8.65, Public Bank shedding two sen to RM4.39 and CIMB falling four sen to RM5.59. Hong Leong Bank meanwhile was up four sen to RM20.20.
Plantations however continued to rise with IOI adding seven sen to RM4.40 and Kuala Lumpur Kepong climbing 32 sen to RM26.12.
MISC, which reently released its earnings result, rose four sen to RM7.04.
Meanwhile, there was some profit-taking in Carlsberg after shares in the brewer jumped over 10% in the previous session on the back of a strong earnings result. At the time of writing, the counter retreated 54 sen or 2.42% to RM21.76.
Top actives on Bursa Malaysia were SMTrack unchanged at 24 sen, Datasonic up two sen to 49 sen and NIce rising two sen to 17.5 sen.