KUALA LUMPUR: Gains on Bursa Malaysia may not be sustainable despite a rally in the previous session to snap a losing streak as investors weigh the possibility of the US central bank ending its rate hikes.
Following the release of the latest Federal Reserve meeting minutes, the cautious approach showed to be taken by policymakers is set to take the shine off recent gains, said Apex Securities Research.
"Any further recovery is expected to be tampered by quick profit takings, over the interim. Global markets are expected to consolidate following a good run in the recent weeks," it said in a note.
Wall Street fell overnight on the back of disappointment that Fed officials gave no indication of rate cuts, given that inflation remains well above their target.
Despite the disappointment, investors on the domestic market are expected to closely monitor stocks in light of the raft of corporate earnings results that due out over the coming days.
At the opening bell, the benchmark FBM KLCI was down 2.81 points to 1,460.59, mirroring the profit-taking in US markets in light of new developments.
There was a decline in bank stocks, led by Maybank down one sen to RM9.10, Public Bank shedding four sen to RM4.23, CIMB dropping three sen to RM5.76 and RHB sliding two sen to RM5.61.
PETRONAS Chemicals slipped seven sen to RM7.31 and Press Metal
lost four sne to RM4.90.
Hap Seng Consolidated, meanwhile, dove 24 sen to RM4.76 following the release of its earnings results yesterday.
Teo Seng rose four sen to 87.5 sen on the back of its own earnings result.
Aviation counters Capital A and AirAsia X were among the top traded following news that the latter had been uplifted from Practice Note 17 status.
Capital A, the most active counter, was up 3.5 sen to 87 sen while AirAsia X surged 24 sen to RM2.34.
