FBM KLCI traders take to the sidelines in lead up to corporate earnings, Fed summit


KUALA LUMPUR: The FBM KLCI shed some weight as investors pressed pause on a rally following Wall Street's overnight decline in the lead up to a Federal Reserve summit this week.

At 12.30pm, the benchmark index was down five points to 1,585.24, erasing the previous day's gains as investors turned to a wait-and-see approach. 

The caution on the market was demonstrated by a pullback in all 13 trading sectors, with declining issues dwarfing advancing by a ratio of 2.2-to-1. Trading volume was 1.42 billion shares changing hands for RM1.03bil.

Observers are holding their breath for more evidence the Fed was poised to deliver an interest rate cut at next month's policy meeting, which would add fuel to the stock rally. Casting some light on the matter, Fed chair Jerome Powell is expected to make some comments at the Jackson Hole symposium over the next few days.

On Bursa Malaysia, there is also growing anticipation over the raft of corporate results that are due to be released this week and next.

Stocks on the backfoot included energy and plantation-related plays; PETRONAS Dagangan fell 34 sen to RM22.60, Kuala Lumpur Kepong shed 34 sen to RM19.28 and Gas Malaysia slid 14 sen to RM4.32.

Of actives, Vantris Energy dropped 0.5 sen to 3.5 sen, Zetrix slid two sen to RM84.5 sen and Tanco was flat at 73 sen.

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Bursa Malaysia , KLCI , equities , trading , stock

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