KUALA LUMPUR (June 22): The FBM KLCI is seen extending its losses today with immediate support remaining at 1,775.

Oil and gas-related stocks could also be under pressure as crude oil prices hover at 10-month lows. 

Declines in financial and energy shares sent U.S. and European equity markets lower on Wednesday, weighed down in part by U.S. crude prices at 10-month lows, while the U.S. Treasury yield curve hit its flattest in nearly a decade, according to Reuters.

The U.S. S&P 500 financial sector closed down 0.8 percent while the European Stoxx Europe 600 Financial Services index closed down 1.3 percent, it said.

Meanwhile, the Dow Jones Industrial Average closed down 57.11 points, or 0.27 percent, at 21,410.03. The S&P 500 closed down 1.42 points, or 0.06 percent, at 2,435.61. The Nasdaq Composite ended up 45.92 points, or 0.74 percent, at 6,233.95, said Reuters.

Europe's broad FTSEurofirst 300 index closed down 0.23 percent at 1,527.15, it said.

AllianceDBS Research in its evening edition Wednesday said the FBM KLCI had on June 21 fallen below the 1,775 support to an intraday low of 1,773.66 as market participants continued to play on the selling side in anticipation of a lower market.

It said under the persistent selling interest, the benchmark index was in the red throughout most of the trading sessions before settling off the day’s low at 1,775.57 (down 5.14 points or 0.29%).

“In the broader market, losers outnumbered gainers with 631 stocks ending lower and 284 stocks finishing higher. That gave a market breadth of 0.45 indicating the bears were in control,” it said.

AllianceDBS Research said the downside breakout of 1,781 on June 20 was viewed as a negative market development as it had caused a change of the market sentiment to the pessimistic side.

“Some market participants with stock positions were “forced” to liquidate partially as they began to see the market drifting lower.

“We believed that those market participants were following the rules of technical analysis and decided to stay objective about the market.

“As a result, the benchmark index failed to sustain its position above the 1,781 level and dipped below another market support level at 1,775 on June 21,” it said.

The research house said following the down close on June 21, there should be selling attempt again with immediate support remains at 1,775.

It said a fall below 1,775 again would put pressure on the market down to the subsequent support at 1,766.

“The analysis of overall market action on June 21 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,773.66 level on June 22,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include: Ekovest Bhd, Kronologi Asia Bhd, Bina Puri Holdings Bhd, Kumpulan Perangsang Selangor Bhd, Country Heights Holdings Bhd, Comfort Gloves Bhd, Glomac Bhd, Berjaya Media Bhd, Ire-Tex Corp Bhd, Pos Malaysia Bhd, O&C Resources Bhd, Scomi Engineering Bhd, Bumi Armada Bhd and My E.G. Services Bhd.