KUALA LUMPUR: Bursa Malaysia opened lower today, despite gains on Wall Street overnight, as cautious investors awaited the Federal Reserve's interest rate decision later this week.
The FBM KLCI fell 3.12 points, or 0.19% to 1,603.73 at 9.10 am. The index opened 1.59 points lower at 1,605.26 earlier.
Overnight, the Dow Jones Industrial Average fell 0.25% to 43,717.85, the S&P 500 rose 0.38% to 6,074.12 and the Nasdaq Composite was up 1.24%, to 20,173.89.
Reuters reported that markets have almost completely priced in a rate cut after the Fed's two-day policy meeting on Wednesday, with a 95.4% chance for a cut of 25 basis points (bps), according to CME's FedWatch Tool.
Inter-Pacific Research expects market conditions to remain relatively benign in the coming day as market participants await the outcome of the Federal Reserve's meeting on interest rates, which may offer fresh buying momentum for Bursa Malaysia stocks.
The research house noted that, as things stand, selling pressure from foreign funds continues, with their disposals pushing more stocks downward and preventing a meaningful recovery from gaining sufficient traction.
“As a result, the key index is seemingly stuck at around the 1,600 levels and unable to sustain the mild upsides.
“With little change to the near-term outlook, we see the key index remaining unsettled and may continue to drift over the near term, lingering between the 1,600 and 1,610 levels over the near term. Beyond the above levels, the other support and resistance levels are at the 1,595 and 1,615 points respectively,” Inter-Pacific said.
Among the decliners on Bursa Malaysia, Nestle fell 22 sen to RM99, Hong Leong Bank lost 18 sen to RM20.26, Kuala Lumpur Kepong declined 12 sen to RM21.54 and Press Metal
gave up 10 sen to RM4.93.
United Plantations jumped 42 sen to RM32.42, F&N added 28 sen to RM28.04, Ajinomoto gained 14 sen to RM15.50 and Aurelius Technologies rose 13 sen to RM3.45.
ACE-Market debutant, Vanzo Holdings rose 23.33%, or 3.5 sen to 18.5 sen with 108.09 million shares traded.
