KUALA LUMPUR: The FBM KLCI is taking profit ahead of key market catalysts from the US, including the Federal Reserve's rate decision and earnings results from leading US tech companies.
After the previous day's 12-point increase, traders were seen paring gains across sectors on Malaysia's benchmark index. As at 9.08am, the index was down 6.05 points to 1,707.04.
MISC dropped nine sen to RM8.03, CIMB fell eight sen to RM7.72, Tenaga Nasional shed eight sen to RM14.38 and PETRONAS Chemicals lost 10 sen to RM4.65.
"We expect the FBM KLCI to extend it rebound this week as improved risk appetite, driven by the US-Iran de-escalation and the sharp decline in crude oil prices, continues to support market sentiment.
"Nevertheless, investors are likely to remain cautious as geopolitical tensions in the Middle East remain fluid, with any renewed escalation likely to reignite volatility in energy prices," said Apex Securities in a note.
Overnight, Brent crude futures plunged nearly 9% to US$88.36 a barrel. Prices have fallen sharply as the suspension of strikes between the US and Iran has opened a window of opportunity for another treaty.
On Malaysian stocks, Apex said it expects investors to remain focused on the technology sector ahead of this week's earnings releases from major US technology companies, although sentiment may stay selective following the overnight weakness in semiconductor stocks.
Meanwhile, the energy sector could remain under pressure after crude oil prices retreated sharply as easing geopolitical tensions reduced concerns over potential supply disruptions.
Among the leading actives, SNS Network rose 0.5 sen to 56.5 sen, TWL gained 0.5 sen to 2.5 sen and Zetrix AI shed one sen to 67.5 sen.
