KUALA LUMPUR: BIMB Securities Research expects Bursa Malaysia to be in the red on Tuesday following the dampened sentiment all over the world.
It said the main factors were the major sell-off in China and continuous outflow of foreign investors.
“We expect the index to test its critical support level at 1,700,” it said.
On Monday, the KLCI closed down 11 points or 0.64% to 1,709.76, dragged down mainly by banking stocks.
BIMB Research said trading participation saw net selling by foreign institutions and local retail while local institutions were net buyers.
Foreign funds were net sellers at -RM259.8mil and retailers at -RM10.2mil while local institutions were net buyers at RM270mil.
Overnight, Europe and Wall Street ended lower following a meltdown in Chinese stock markets.
BIMB Research said the DJIA fell 0.73% to end at 17,440.59 and the broader S&P500 lost 0.58% to close at 2,067.64.
China suffered the sharpest daily fall since 2007, losing 8.48% as worries mount that Beijing are pulling back on measures to prop up the market. The spill-over effect caused most key regional markets to end lower.
-The Star Online