KUALA LUMPUR: The benchmark index FTSE Bursa Malaysia KLCI is expected to remain volatile amid geopolitical risks, domestic political uncertainties and inflationary pressures, as a global technology stock sell-off weighs on investor sentiment despite resilient domestic economic fundamentals.
Affin Hwang Investment Bank head of research Loong Chee Wei expects the benchmark index to face continued volatility, with elevated global bond yields and uncertainty surrounding United States policies posing risks to financial markets.
The caution comes after a sharp overnight sell-off on Wall Street spilled over into Asian markets on Friday, amid concerns that the Democratic Party's victory in the US midterm elections could lead to tighter regulatory scrutiny of artificial intelligence (AI) and slow the expansion of data centres.
