KUALA LUMPUR: The FBM KLCI slumped 0.7% as traders took profit ahead of earnings releases from the US's tech sector and the Federal Reserve's interest rate decision later this week.
Despite seeing 12 points shaved off the benchmark index, the FBM KLCI remained at a multi-year high of 1,758.84, about 40 points or 2.3% ahead of last Friday's close.
Blue chips that dragged on the index included CIMB falling 20 sen to RM8.75, Gamuda shedding 11 sen to RM4.60 and Nestle slipping RM1 to RM114.60.
While bank stocks on the FBM KLCI were mostly in profit-taking mode, Maybank (up two sen to RM11.78) and Hong Leong Bank (up six sen to RM25.14) bucked the trend.
The profit-taking spilled over into the broader market, which registered 769 declining issues, about 2.5 times the number of advancing issues.
Almost every sector was in the red, with rally-leading financial services pulling back 0.6% from all-time highs. Healthcare stood out as the only positive play, rising 1.6% after failing to make much headway during the recent rally.
Trading volume was up over the previous day's midday tally to 2.14 billion shares valued at RM2.12bil.
Explaining Bursa Malaysia's outperformance and high trading interest despite ongoing geopolitical uncertainties, Apex Research said the stronger ringgit is bolstering risk appetite in the local bourse.
"In the near term, we expect market momentum to be maintained, although investors may remain cautious ahead of the US Federal Reserve’s policy decision and guidance on the timing of potential rate cuts.
"Attention will also turn to a heavy slate of Big Tech earnings, including results from Microsoft, Meta and Tesla on Jan 28, followed by Apple on Jan 29, which could shape broader market sentiment and risk appetite," it said in its market outlook.
The currency traded at a middle rate of 3.9205 against the greenback at the KL Interbank Foreign Exchange Market at midday.
In regional markets, Japan's Nikkei was down 0.52% to 53,058 while South Korea's Kopsi piled on gains for a second straight day by another 1.3% to 5,151.
Picking up on optimism over Wall Street's scheduled tech earnings, China's markets maintained a rally - the Shanghai Composite index rose 0.5% to 4,160, the CSI300 added 0.47% to 4,727 and Hong Kong's Hang Seng surged 2.21% to 27,725.
