Bursa Malaysia wobbly on fresh US rate hike worries

KUALA LUMPUR: Bursa Malaysia is faced with more selling pressure on Tuesday following the decline on Wall Street as US economic data came in hotter than expected.

At 9.05am, the FBM KLCI was down 0.8 points to 1,470.76.

The overall market breadth was negative at 209 decliners to 122 gainers.

Trading volume was 219.72 million shares valued at RM63.69mil.

According to Malacca Securities Research, Malaysian equities were under pressure in the previous session as investors deployed a "sell on news" strategy following the formation of a new Cabinet.

External pressures mounted as sentiment in US markets wobbled on the strength of November ISM services data, which pointed towards ongoing inflation risks.

"With the sentiment turning negative on Wall Street, we expect more profit taking activities to emerge on the local front; especially the technology sector," said Malacca Securities.

However, the research firm expects downside risks to be limited as China is due to announce 10 new Covid-19 easing measures on Wednesday.

In the spotlight today, the broker added, is the poultry segment as the market awaits the Ministry of Agriculture's announcement of a new price control mechanism for eggs.

Following the resumption of trading on Bursa Malaysia, Comintel Corp surged 233% in the previous day's trading. The buying frenzy continued on Tuesday as the share price jumped 30 sen or 76.9% to 69 sen.

Helping to lift the FBM KLCI higher was Tenaga Nasional, up five sen to RM9.12 as it rebounded from recent losses.

IHH also gained five sen to RM5.90 while Sime Darby Plantation rose four sen to RM4.44 and Axiata added two sen to RM3.09.

Top actives on the market were Euro up 3.5 sen to 14 sen, Dataprep surging 11.5 sen to 28.5 sen and MQ Technology rising two sen to 7.5 sen.

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