FBM KLCI could tumble towards the support zone of 1,415-1,435 ahead

Yesterday’s market rebound might be a short-lived one as our Malaysian bourse is likely to surrender all its gains and more following Wall Street’s overnight collapse. Its benchmark FBM KLCI could tumble towards the support zone of 1,415-1,435 ahead.

Investors will be looking to dump shares across the region today after major U.S. equity indices plunged between 4.1% and 4.6% last night. Essentially, market sentiment was hit hard amid mounting worries that there would be spillover effects from possible fallout from the prevailing European debt crisis. With the number of declining stocks set to overwhelm advancing ones back home, hoping to buck the bearish trend is Malaysia Airports. The stock may react to a media report that airport taxes could be raised from next month.