KUALA LUMPUR: Concerns over rising US debt sent Wall Street equities lower overnight, ripples of which are weighing on the Malaysian stock market.
The benchmark FBM KLCI dropped 3.34 points to 1,541.46, putting the index on the back foot yet again after five consecutive days of losses.
Over at Capital Hill, US President Donald Trump is attempting to push through a budget bill, which the Congressional Budget Office estimates could add about US$2.3 trillion to the US national debt over the next 10 years.
TA Securities Research said the ongoing correction on the local market is owing concerns over the US fiscal deficit and downbeat economic outlook expressed by Federal Reserve officials.
"Traders remain concerned that a new budget bill could exacerbate the U.S. deficit, adding to economic uncertainty," it said in a note.
Meanwhile, Rakuten Trade said in its review it expects the local market to stay in consolidation mode given the lack of fresh catalysts.
"Still lacking any catalysts, we expect the local bourse to stay in consolidation mode with the index to oscillated between the 1,540-1,550 range today," it said.
Investors are expecting more profit results from Corporate Malaysia over the coming days as the first-quarter earnings period enters its stride.
Laggards in the opening minutes of trade included F&N down 56 sen to RM26.02, Hong Leong Bank dropping 18 sne to RM19.82, IE Industrial shedding 13 sen to RM4.06 and Gamuda slipping 10 sen to RM4.48.
Top actives were Ta Win unchanged at two sen, Velesto
unmoved at 16.5 sen and Harvest Miracle down 0.5 sen to 18 sen.
Over in other parts of Asia, Japan's Nikkei was down 0.63% to 37,060 while Singapore's Straits Times index dipped 0.2% to 3,874.
