By 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) had lost 7.53 points to 1,483.98, taking away two straight days of gains.
The day started with a promise, with the index showing a 2.15-point gain to 1,489.36 over yesterday’s close of 1,491.51 but that quickly fizzled out.
There were 122 gainers and 169 losers on the broader market, while 274 counters were unchanged, 1,668 were not traded and 14 others were suspended.
Turnover stood at 150.82 million units worth RM572.58 million.
In a research note today, Rakuten Trade Sdn Bhd said it expects the FBM KLCI to hover within the 1,485 to 1,500 range today.
As for the financial market, it said local importers, especially the consumer and industrial products-related companies, will benefit from the ringgit strengthening to an almost six-month high against the US dollar at RM4.40/US$1 in view of the likelihood of a less aggressive rate hike by the US Federal Reserve.
RHB Research said that although the domestic political risk post-15th general election has somewhat abated, investors continue to await the formation of the new cabinet and the re-tabling of Budget 2023.
“The new unity government needs to prove its ability to work together. We think subsidy and fiscal reforms will be the acid test.
“The presence of the Borneo bloc in the new administration will be positive for infrastructure programmes in Sabah and Sarawak, and we believe that on balance, there are now reasons to be less pessimistic,” it said.
Nonetheless, the research house said investors should still approach 2023 with caution but urged them to start looking for opportunities to build positions in the medium term and buy on weaknesses.
“Another spike in markets should invite some short-term profit-taking, but investors should re-focus on fundamentals with a preference for large-cap value stocks,” it said.
Meanwhile, among the heavyweights, Maybank fell two sen to RM8.60, Public Bank deducted six sen to RM4.41, Petronas Chemicals eased five sen to RM8.62, CIMB decreased 12 sen to RM5.63 and Tenaga shed 13 sen to RM9.37.
Of the actives, Advance Synergy and UEM Sunrise rose a sen each to 18.5 sen and 29 sen, respectively, and Infomina gained two sen to 84 sen, while Progressive Impact and Velesto were flat at 20.5 sen and 15 sen, respectively.
On the index board, the FBM Emas Index decreased 43.46 points to 10,651.01, the FBMT 100 Index fell 45.34 points to 10,359.90, the FBM Emas Shariah Index went down 28.49 points to 10,874.77, the FBM 70 erased 28.28 points to 13,024.99, and the FBM ACE trimmed 19.22 points to 5,271.75.
Sector-wise, the financial services index slipped 103.80 points to 16,463.06, the industrial products and services index inched down 0.36 of-a-point to 182.88, and the energy index eased 0.25 of-a-point to 785.06, while the plantation index gained 21.36 points to 6,842.65.