Bursa trades sideways as US interest rate decision looms

KUALA LUMPUR: Bursa Malaysia is expected to stay little changed ahead of the US Federal Reserve's interest rate decision, as well as the decline in crude oil prices, said Apex Securities Research.

Market expectations are for the US central bank to maintain the status quo given recent economic data has showed the monetary tightening has had an effect in slowing the pace of inflation.

Also positively, Apex said the reshuffling of Cabinet ministers in Malaysia will provide some certainty over the local political scene.

Following the continuation of the bullish trend on Wall Street overnight, the research firm added that technology stocks may trade higher, taking a cue from the spillover sentiment from the US technology sector.

At the opening bell, Malaysia benchmark stock index was down 1.04 points to 1,446.08 as investors were content with staying to a sideways channel.

Stocks on the decline included Sime Darby Plantation falling five sen to RM4.44, Tenaga Nasional shedding five sen to RM9.88 and PETRONAS Chemicals falling two sen to RM7.07.

Kuala Lumpur Kepong, however, rose 12 sen to RM21.60.

On the broader market, Vitrox fell seven sen to RM7.03, Time dotCom dropped four sen to RM5.11 and Hibiscus Petroleum slid four sen to RM2.38.

Gainers included Hartalega up four sne to RM2.33, Kossan rising three sen to RM1.65 and Bermaz Auto climbing six sen to RM2.36.

Top actives included Sarawak Cable up 3.5 sen to 24.5 sen, Velesto dropping one sen to 21.5 sen and Handal unchanged at 13 sen.