KUALA LUMPUR: Investors are growing increasingly wary over the lack of progress in the Middle East conflict, sending equities prices lower even as the US threatened to escalate attacks on Iran should the Strait of Hormuz not be reopened.
"Global markets remain highly sensitive to developments in the Middle East crisis, where geopolitical uncertainty is fueling volatility in oil and other commodity prices. Risk appetite has also weakened further amid persistent inflationary pressures and a dimmer economic outlook," said TA Securities in its market report.
The research firm also noted the technical indicators on the FBM KLCI have deteriorated, pointing to a likely consolidation with a downward bias this week.
"Nevertheless, sharp declines may present bargain-hunting opportunities, with recovery potential once oversold conditions emerge," it added.
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