KUALA LUMPUR: Bursa Malaysia pared earlier losses to end marginally lower today as cautious sentiment prevailed ahead of the US Federal Reserve (Fed) meeting next week.
At 5pm, the FBM KLCI eased 1.77 points, or 0.11 per cent, to 1,621.07 from Wednesday’s close of 1,622.84.
The benchmark index, which opened 1.79 points higher at 1,624.63, moved between 1,616.49 and 1,625.99 throughout the day.
The broader market was negative, with decliners surpassing advancers 463 to 458. A total of 699 counters were unchanged, 1,105 untraded, and seven suspended.
Turnover expanded to 4.48 billion units worth RM2.75bil from 3.28 billion units worth RM2.30bil yesterday.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the US ADP Employment Report and the Institute for Supply Management Services Purchasing Managers’ Index data represent only part of the five key indicators scheduled before the Fed meeting.
“Markets are now awaiting the Weekly Jobless Claims, the Personal Consumption Expenditures inflation report, and the Michigan Consumer Sentiment Survey, all of which will shape the Fed’s assessment of labour softening, inflation momentum, and household expectations,” he told Bernama.
Additionally, the Nonfarm Payrolls report originally due today, has also been delayed following the recent US federal government shutdown, compressing the data window and intensifying market sensitivity.
“Should the Fed cut rates, the initial market reaction is likely to be supportive. Softer US yields typically alleviate pressure on emerging-market currencies, which could help stabilise the ringgit and bolster sentiment toward Malaysian equities,” he said.
