KUALA LUMPUR: The FBM KLCI slipped in early trade Tuesday, tracking a decline on Wall Street overnight.
The market bellwether fell 1.94 points, or 0.13% to 1,449.08 at 9.17am. The index opened 0.11 of a point higher at 1,451.13.
Among the losers, Nestle slid RM1.30 to RM112.60, Pertama fell 18 sen to RM2.50, Hong Leong Bank lost 14 sen to RM19.08 and Tenaga gave up seven sen to RM9.91.
Hong Leong Financial Group rose 12 sen to RM16.72, Heineken gained 12 sen to RM21.62, Ajinomoto added 10 sen to RM16 and Sam Engineering climbed nine sen to RM4.25.
Classita jumped 22.22%, or one sen to 5.5 sen. It is currently the most actively traded counter with 76.58 million shares done.
Overnight, the Dow Jones Industrial Average closed down 41.06 points, or 0.11%, to 36,204.44, the S&P 500 lost 24.85 points, or 0.54%, to 4,569.78 and the lost 119.54 points, or 0.84%, to 14,185.49.
Malacca Securities said Wall Street ended lower as cautious sentiment emerged among investors ahead of the employment data this week which will still influence the Fed’s decision on interest rates.
The European stock market ended lower, while Asia ended mixed with investors eyeing the inflation data from South Korea and Japan.
“We believe the ongoing geopolitical tension in the Middle East may be dampening the overall market sentiment as well, limiting the upside potential on the global and local stock markets.
“On the commodity markets, the Brent oil prices declined more than 1% to trade around US$78 per barrel despite the additional production cuts by the OPEC+ members,” Malacca Securities said.
Apex Securities reckoned that the FBM KLCI may remain range-bound in the near term while anticipating for further positive regional developments.
Nevertheless, the longer-term outlook remained positive as the decline in US Treasury yields and the possibility of a rate hike slowdown may attract foreign funds into the local bourse.
“Key economic focus will be directed towards China and US services and composite PMI data to be released today. Meanwhile, we suggest directing attention toward gold-related stocks, given that gold prices have continued its rally touching US$2,100/oz. Demand for safe-haven assets has risen due to ongoing geopolitical uncertainty and prospects of a weaker US dollar,” Apex said.