KUALA LUMPUR: Bursa Malaysia opened marginally higher but declined within minutes of trading, reflecting investors’ concerns about a potential interest rate hike by the United States (US) Federal Reserve (Fed), a dealer said.
The Fed is widely expected to deliver a 75 basis-point interest-rate hike at the end of its two-day policy meeting today.
At 9.15 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 2.51 points to 1,461.18 from Tuesday’s close of 1,463.69.
The benchmark index opened 0.44 points better at 1,464.13.
On the broader market, losers led gainers 161 to 129, while 222 counters were unchanged, 1,778 untraded and 20 others suspended.
Turnover stood at 176.28 million units worth RM62.93 million.
In a research note today, Malacca Securities Sdn Bhd said investors are also preparing for more volatility over the near term ahead of the second quarter (Q2 2022) US gross domestic product (GDP) data, which will be released tomorrow.
“Hence, stocks with defensive characteristics may be in focus. As for commodities, oil benchmark Brent crude and crude palm oil (CPO) prices stabilised around US$104 and RM3,700, respectively, but we expect the CPO price may weaken amid returning exports from Indonesia.
“Sector-wise, the Real Estate Investment Trust (REITs) and consumer sectors may see resilient movement as defensive stocks amid the market volatility,“ it said.
The brokerage added that selected technology stocks might take a beating ahead of the possible interest rate hike in the US, tracking the pullback in the Nasdaq overnight.
Among the Bursa heavyweights, Maybank, Public Bank and IHH Healthcare were flat at RM8.79, RM4.60 and RM 6.43, respectively, while Petronas Chemicals eased half-a-sen to RM8.57 and CIMB Group gave up one sen to RM5.19.
Of the actives, Serba Dinamik and Sapura Energy were flat at 11 sen and 4.5 sen, respectively, while Metronic Global, Pertama Digital and Destine advanced half-a-sen each to 10.5 sen, 88 sen and 11 sen, respectively.
On the index board, the FBM Emas Index shed 14.24 points to 10,361.51, the FBM Emas Shariah Index slipped 20.50 points to 10,401.49, the FBMT 100 Index slid 15.70 points to 10,118.15, the FBM ACE dipped 23.82 points to 4,705.88, and the FBM 70 was 12.18 points lower at 12,391.50.
Sector-wise, the Plantation Index declined 6.57 points to 6,843.19, the Financial Services Index trimmed 2.12 points to 16,483.90 and the Industrial Products and Services Index lessened 0.69 of-a-point to 176.71, while the Energy Index expanded 3.09 points to 644.17. - Bernama
