Can the 1,700 support level hold for FBM KLCI?

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The 1,700 Level is Expected to Provide Strong Support for the FBM KLCI

The FBM KLCI closed lower on Friday, declining 13.57 points or 0.79 per cent to 1,701.02. Despite this drop, analysts believe the 1,700 level should offer significant psychological and technical support. This expectation is driven by potential bargain-hunting activities following a recent market pullback, and the index has so far managed to remain above this crucial threshold.
1,700 Level as a Key Support Zone

Rakuten Trade Sdn Bhd vice-president of equity research, Thong Pak Leng, indicated that the 1,700 mark is anticipated to serve as a robust support level. This view is based on the expectation of bargain-hunting emerging after the recent decline in the market. While external factors may continue to cause volatility, the FBM KLCI's retreat to above this level suggests that valuations are becoming more attractive to investors.
Underlying Market Resilience

Mohd Sedek Jantan, director and country economist at IPPFA Sdn Bhd, observed that the local market has shown greater resilience compared to previous periods of oil price spikes. Although the benchmark index experienced a decline, its ability to hold above the 1,700-point level points to stronger underlying market support. This resilience is attributed to improved domestic fundamentals and sustained participation from institutional investors.
Investor Sentiment and Domestic Fundamentals

The market's capacity to remain above the key 1,700 support level suggests that investors are adopting a more measured approach. This indicates that despite geopolitical developments and elevated energy prices, which are likely to keep volatility high in the near term, the market's reaction is not a broad-based risk-off sentiment. Instead, it reflects a confidence underpinned by the strength of domestic fundamentals and continued institutional involvement.

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Can the 1,700 support level hold for FBM KLCI?

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