Just three minutes into the day’s trading session, the FTSE Bursa Malaysia KLCI (FBM KLCI) had lost 0.96 of a point to 1,438.20 from yesterday’s close of 1,439.16.
The benchmark index opened 0.05 of a point easier at 1,439.11.
The Swiss National and Bank of England raised their interest rates by 75 basis points (bps) and 50 bps respectively on the heels of a 75 bps hike by the US Federal Reserve.
On Bursa, the market breadth was slightly positive with gainers leading decliners 119 to 102, while 174 counters were unchanged, 2,003 were not traded and nine others suspended.
Turnover stood at 76.16 million units worth RM37.42 million.
Malacca Securities Sdn Bhd said the FBM KLCI slipped after weaker sentiments triggered a selldown globally due to the Fed’s hawkish tone, adding that investors would continue to price in more aggressive interest rate hikes, going forward.
“We believe the local bourse is likely to stay cautious and remain on a downward bias. Meanwhile, investors may watch for Malaysia’s inflation rate to gauge the upcoming overnight policy rate outlook by Bank Negara Malaysia,” it said.
On commodities, it noted the crude oil price was likely to trade around US$90 over the near term, while the crude palm oil (CPO) price hovered below RM3,800.
“We remain positive on the banking sector on the back of the interest rate upcycle environment, while the telco, solar-related, construction and building material-related sectors are expected to see some buying interest ahead of the 2023 budget.
“Meanwhile, oil and gas stocks could perform well in the near term as earnings have been steadily growing over the past quarters,” it added.
Among the heavyweights, Public Bank shed a sen to RM4.38, Petronas Chemicals declined four sen to RM8.46 and IHH Healthcare slid five sen to RM5.95.
Maybank improved a sen to RM8.72, while CIMB Bank was flat at RM5.38.
Of the actives, Resintech and Cnergenz bagged two sen each to 56 sen and RM1.04, respectively, Resintech warrant edged up half-a-sen to 15 sen and Jentayu added a sen to 55.5 sen, while China Automobile was flat half-a-sen.
On the index board, the FBM emas index ticked up 0.13 of-a-point to 10,293.68 and the FBM 70 perked 5.5 points to 12,559.80, while the FBMT 100 index lost 4.04 points to 10,028.21, the FBM emas shariah index decreased 5.20 points to 10,353.02 and the FBM ACE gave up 20.52 points to 4,798.13.
Sector-wise, the energy index was 5.22 points better at 725.09, the plantation index climbed 6.05 points to 6,850.74, the financial services index gained 11 points to 16,345.45, and the industrial products and services index edged up 0.33 of a point to 174.57.
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