KUALA LUMPUR: There could be further pullback on the domestic market as a key US inflation report is scheduled to be released later tonight, giving investors new direction on the global inflation environment.
"Despite yesterday's selloff potentially leading to some bargain hunting today, overall market activity is likely to be cautious ahead of the US PCE inflation data release tonight," said Apex Securities Research in its outlook.
The research firm also noted that the local market sentiment is expected to be weak due to lingering concerns over BlackRock's investments in the country.
Yesterday, Minister of Investment, Trade and Industry Datuk Seri Tengku Zafrul Aziz said in Parliament that there will be a negative impact should the investment firm withdraw its investments from the country.
On the more positive side, Apex said S&P reaffirmation of Malaysia's stable economic outlook may provide some positivity to the consumer sectors.
"Amid current market volatility, the construction, finance, and REITs sectors will continue to serve as risk-averse trading opportunities," it said.
At the open, the FBM KLCI was down 1.41 points to 1,583.53, with Tenaga Nasional weighing heavily on the market.
The utility was down 28 sen to RM13.66, its lowest in three weeks. Meanwhile, YTL Power fell four sen to RM4.76, PETRONAS Gas dropped eight sen to RM17.90, Hong Leong Financial Group slid 12 sen to RM17.18 and PPB fell four sen to RM14.28.
Of actives, Ingenieur slid 0.5 sen to 5.5 sen, JAKS was unchanged at 16 sen and Hextar Industries rose three sen to 46.5 sen.
