At 9.08 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) shaved 0.67 of-a-point to 1,443.55 from Thursday’s close of 1,444.22.
The benchmark index opened 2.6 points easier at 1,441.62.
On the broader market, losers led gainers 148 to 109, while 161 counters were unchanged, 1,811 untraded and nine others suspended.
Turnover stood at 111.20 million units worth RM58.47 million.
Rakuten Trade vice-president of equity research Thong Pak Leng noted that US equities closed lower as investors remained jittery following signs that the US Federal Reserve (Fed) would maintain its aggressive interest rate increase in its forthcoming meeting in July.
The Dow Jones Industrial Average was 0.82% lower, the S&P 500 fell 0.88% and the Nasdaq Composite declined 1.33%.
On the local front, Thong said the FBM KLCI had succumbed to late selling yesterday amid some portfolio rebalancing by foreign funds.
“We reckon the local bourse will remain in consolidation phase, trending in the 1,435-1,450 range today,” Thong told Bernama.
He noted that the benchmark Brent crude oil price had eased to below US$115 per barrel on recession fears.
As markets enter the second half (H2) of the year, the online equities brokerage believes that the prevailing low valuations and a relatively steady economic outlook should attract foreign funds despite the subdued sentiment on the local bourse.
“We should see these foreign funds providing much-needed liquidity in the market, thus we anticipate the FBM KLCI to possibly touch 1,670 by year-end, premised on a reasonable 13.5 times calendar year (CY) 2022 price-to-earnings ratio.
“We believe that banking and plantation sectors’ earnings will surprise on the upside this year. As for 2023, we are expecting earnings growth to rebound to 5.4%,” said Thong.
Year-to-date, the FBM KLCI had fallen 7.87% on June 30 from 1,567.53 recorded on Dec 31, 2021.
Among the heavyweight stocks, Hartalega eased 17 sen to RM2.89, Press Metal was down five sen to RM4.71, MRDIY shed four sen to RM2.03, Maybank decreased two sen to RM8.57 and Public Bank was flat at RM4.37, while Petronas Chemicals rose three sen to RM9.03.
Of the actives, both Yong Tai and Reach Energy were flat at nine sen and 5.5 sen, respectively, Hibiscus Petroleum declined 2.5 sen and Top Glove reduced two sen to RM1.02, while SMTrack and Yew Lee added half-a-sen to seven sen and 24.5 sen, respectively.
Sector-wise, the financial services index eased 9.12 points to 15,975.06 and the industrial products and services index was 0.16 of-a-point lower at 181.54, while the plantation index gained 13.62 points to 6,914.45.