KUALA LUMPUR: The domestic market slipped into the red in early morning trading following the decline in US markets as crude oil prices returned above US$120 a barrel.
Overnight, major US indices dipped over 1% each as worries re-emerged over the impact of elevated oil prices on already-high inflation.
"With the Wall Street taking a pause after a recent strong rebound, we expect the profit taking activities may spill over to the local front,
especially the technology stocks.
"We think investors may stay cautious in the anticipation of further sanction against Russia, which may lift commodity prices another round," said Malacca Securities Research in a report.
Losses in Malaysia's heavyweight index were mild as oil and gas-related counters offered support after rising in tandem with the surging commodity price.
At 9.05am, the FBM KLCI was down 1.7 points to 1,596.18, erasing some of the gains made earlier in the week.
Hong Leong Bank was down six sen to RM20.44, IHH dropped five sen to RM6.49 and Sime Darby Plantation
fell 6c to RM4.99.
Petronas Chemicals however rose eight sen to RM9.67 while Hartalega jumped eight sen to RM4.91.
Among actives, CSH rose 0.5 sen to 17 sen, Velesto was unchanged at 10.5 sne and Sapura Energy was unchanged at three sen.
