Chart 1: FBMKLCI's daily chart as at Apr 2, 2019_9.18am (Source: Malaysiastock.biz)
On the weekly chart, we can see that FBMKLCI broke below the line connecting the low since 2010 (AB). That breakdown, which occurred 2 weeks ago, led to the current round of decline.
The sell-down of blue-chip stocks is especially bad among the banking stocks. However, we can see the Finance index is still above its long-term uptrend line.
Chart 4: SSEC's daily chart as at Apr 1, 2019 (Source: Stockcharts.com)
Based on the bullish outlook for other Asian markets, it is likely that our current decline may find support, if not at the current level, then at 1610 or 1600. Despite attractive prices for some stocks, it is still prudent to be cautious and to watch for a recovery before buying.