KUALA LUMPUR: The domestic market was not spared the negative sentiment that hit US markets overnight, extending the decline that began yesterday on fears that aggressive US interest rate hikes could dampen economic growth.
At 9.05am, the FBM KLCI was down 1.39 points to 1,603.22. The overall market remained firmly negative with 280 decliners compares to 93 gainers.
"We expect investors to trade in a risk-off mood following the negative sentiment on Wall Street, especially the selldown in technology stocks triggered by rising bond yields ahead of the US inflation data may spillover on our local technology stocks," said Malacca Securities Research.
However, the research firm was positive on the number of Covid-19 cases in the country falling to below 10,000, which could benefit the recovery theme.
From a technical view, it said the FBM KLCI was well-supported by the 1,600 psychological level despite the recent pullback.
Among the heavyweights, Press Metal slumped 13 sen to RM6.43 to lead the decline,
Axiata dropped three sen to RM3.68 and MISC shed two sen to RM7.64.
Petronas Chemicals rose eight sen to RM10.28 while IOI gained three sen to RM4.40.
Technology stocks tracked the Nasdaq lower, led by MPI down 78 sen to RM32.30, Vitrox shedding 15 sen to RM7.35 and Inari Amertron down six sen to RM2.91.
Top actives were CSH up one sen to 15 sen, Tanco gaining 11 sen to 50.5 sen and China Ouhua Winery up 0.5 sen to nine sen.