KUALA LUMPUR: Bursa Malaysia stayed cautious following the renewed volatility on Wall Street overnight as technology stocks fell amid reports of export caps on AI chips.
The FBM KLCI crept marginally higher at the start of trading amid growing anticipation over the tabling of Budget 2025 on Friday. However, by 9.20am, the index had succumbed to selling pressure, down 4.27 points to 1,637.7, after 221.44 million shares traded.
Overnight, US technology stocks fell sharply after it was reported that the Joe Biden administration was considering capping AI chip exports by US companies.
The Dow Jones Industrial Average fell 0.75% to 42,740.42, the S&P 500 lost 0.76% to 5,815.26 and the Nasdaq Composite lost 1.01% to 18,315.59.
Domestically, Apex Securities Research said losses will be cushioned as investor confidence improved following Prime Minister Datuk Seri Anwar Ibrahim's comments that the Goods and Services Tax would only be reinstated upon the minimum wage being set at RM3,000.
Nevertheless, the performance of the US markets will remain in focus, with the release of key economic data and further coprorate earnings.
"We expect the technology sector to turn downbeat amid the negative developments surrounding AI chip export from the Joe Biden administration.
"Meanwhile, defensive-related sectors such as REIT and consumer may thrive today," said the research firm in its market outlook.
Among the early leaders, PETRONAS Gas climbed 18 sen to RM17.88, Hong Leong Bank jumped eight sen to RM21.28 and Westports rose eight sen to RM4.25.
LPI Capital added four sen to RM12.86 while Genting Malaysia gained two sen to RM2.25.
Of actives, Sarawak Cable fell one sen to eight sen, Northeast Group lost one sen to 49.5 sen and Malayan Flour Mills lost 4.5 sen to 66.5 sen.
