KUALA LUMPUR: The FBM KLCI saw some short-term profit-taking following a fall in the S&P500 and Nasdaq indices overnight as investors rotated out of Big Tech and into smaller companies that are expected to benefit from lower borrowing costs.
On Friday, the FBM KLCI opened a marginal 0.39 points lower at 1,622.77
Nevertheless, Apex Securities Research said the key index is expected to continue trending higher as foreign funds flow into the domestic market amid optimism in the equities landscape.
Weaker-than-expected June inflation data in the US has bolstered expectations of a September rate cut, leading to improved risk appetite for global equities, and a potential acceleration of offshore buying of Malaysian equities.
According to CME FedWatch Tool, there is now a 92.7% chance the central bank will cut the lending rate by at least 25 basis points in September.
Apex Securities said with the US consumer price data out of the way, the investor focus has moved forward to the US producer price index and Michigan consumer sentiment, to be announced tonight.
Back home, investors will be monitoring Malaysia's industrial production data later today.
"We continue to favour the construction sector riding onto the upcoming slew of mega infrastructure projects rollout.
"Meanwhile, the buoyant retail sales data may potentially lead to improved trading sentiment within Consumer sector," it said in its market outlook.
Among the leading blue chips, Maybank fell four sen to RM10.02, Tenaga Nasional dropped four sen to RM14.56 while YTL Power shed five sne to RM5.10.
MISC put on 15 sen to RM8.75 and PETRONAS Chemicals rose three sen to RM6.18.
There was also a decline in technology stocks following the Nasdaq's sharp 2% drop overnight. MPI lost RM1 to RM40, Greatec slid 12 sen to RM5.71, Frontken fell 11 sen to RM4.56 and Vitrox slid 10 sen to RM4.41.
Of actives, NovaMSC slipped 1.5 sen to 18.5 sen, G3 was unchanged at 3.5 sen and Astro
fell two sen to 29 sen.
