KUALA LUMPUR: The FBM KLCI retreated in the early session as trader opted for a wait-and-see approach ahead of this week's Bank Negara interest rate decision and the Johor elections.
The pullback in the domestic market was also in line with a sell-off in technology stocks in the region, despite South Korea's Samsung Electonics projecting a 19-fold increase in its second-quarter profit.
At the midday break, the Malaysian benchmark index was down 3.35 points or a fifth of a percent to 1,680.18.
Over the broader market, the number of declining issues outnumbered the gainers 482 to 323. Trading volume was 1.57 billion shares changing hands for a low value of RM849.08mil.
Nearly all sectors on the market were in negative territory, including healthcare sliding 0.22%, plantations down 0.19%, consumer services shedding 0.15% and property down 0.58%.
Financial services ended a marginal 0.03% higher, energy stocks were up 0.19% and technology stocks picked up 0.44%.
Among the most actively traded shares, Zetrix AI was flat at 76 sen, Tanco unchanged at 18.5 sen and Asdion
down 1.5 sen to 0.5 sen.
In regional markets, traders grew cautious over whether the AI cycle could maintain its pace of growth, in line with high expectations.
South Korea's Kospi slumped 7.53% to 7,446, after both SK Hynix and Samsung Electronics saw sharp selling pressure. Even the latter tech giant's stellar earnings forecast could not stop traders from cashing in on the stock.
Japan's Nikkei dropped 1.81% to 68,474. In China, the Shanghai Composite index fell 1.04% to 3,999 while the CSI 300 slid 0.83% to 4,802.
Hong Kong's Hang Seng was down 0.42% to 23,517.
