KUALA LUMPUR: Bursa Malaysia struggled to keep the positive momentum going as hot US inflation data threatened to keep interest rates higher for longer, dampening the investment mood.
Wall Street stocks ended lower overnight as the US's February producer price index came in at a higher-than-estimated 0.6%, which could delay the start of interest rate cuts.
However, the buying interest in plantation stocks on the domestic market seen in the previous session could continue on the back of stronger commodity prices.
"Despite the slight decline in the US, we expect the positive sentiment on the local front to sustain with the traders focusing on commodities related stocks within plantations and oil and gas.
"Besides, we like the construction and property sectors for the potential revival of the Kuala Lumpur-Singapore high-speed rail, while investors may continue to position within the defensive Consumer sector," said Malacca Securities Research.
At the open, the FBM KLCI dropped 6.8 points to 1,535.90, with selling seen in PETRONAS Dagangan down six sen to RM21.28, PETRONAS Gas falling eight sen to RM17.74 and Tenaga Nasional sliding six sen to RM11.50.
Banks rose with CIMB gaining five sen to RM5.49, Hong Leong Bank climbing six sen to RM19.32, Maybank rising one sen to RM9.66 and Public Bank adding two sen to RM4.25.
Top actives included Hong Seng unchanged at 1.5 sen, TWL flat at 3.5 sen and Eversendai rising two sen to 35 sen.
