KUALA LUMPUR: Bursa Malaysia is joining global equities in the red following a downturn in sentiment sparked by the US Federal Reserves hawkish tone in its recently concluded policy meeting.
With expectations that the US Federal Fund Rate will be kept elevated for longer than expected, investors are rushing to take cash out of equities markets.
Overnight, the Dow Jones Industrial Average fell 1.1% to 34,070 while the S&P and Nasdaq dove 1.6% and 1.8% respectively.
Meanwhile, fears of a US government shutdown caused by yet another impasse in Congress are also lending downside pressure to embattled markets.
At the open, the benchmark FBM KLCI was 2.32 points lower at 1,445.88.
Reiterating its stance, Malacca Securities Research said it believes domestic catalysts such as the National Energy Transition Roadmap and New Industrial Master Plan, coupled with the upcoming Budget 2024 will provide buying support within certain sectors for at least the near-term.
"We still favour the property and construction sector amid the potential revival of the KL-SG HSR.
"Moreover, we believe investors may position within the industrial products, renewable energy as well as building
materials that may be related to NETR and NIMP blueprints," it said in a note.
Among blue-chips taking a fall, bank shares were lower with Maybank dipping three sen to RM8.87 and Public Bank sliding two sen to RM4.19.
Telekom shed six sen to RM4.97 and PETRONAS Chemicals dropped five sen to RM7.26.
Top actives stocks were KNM up 0.5 sen to 12.5 sen, Tanco unchanged at 55.5 sen and E&O gaining 1.5 sen to 66.5 sen.