KUALA LUMPUR: The FBM KLCI failed to rebound despite a mild inflation report in the US that triggered a Wall Street rally.
As traders banked on odds the Federal Reserve will maintain the status quo on interest rates in September, investor sentiment remained shaky as the conflict in the Middle East continued and crude oil prices remained elevated.
Apex Securities noted that much of the recent strength in US equities has been concentrated on a narrow group of large-cap tech and AI-linked names, leaving broader market breadth still relatively thin.
"Locally, easing oil prices could reduce near term earnings momentum for commodity-linked counters that had recently outperformed, while broader sentiment on the KLCI may find some support from cooling inflation and steadier regional risk appetite.
"We stay cautious to conservative on the local market today, as investors weigh moderating inflation and improving rate expectations against lingering uncertainty over the Hormuz situation and its impact on regional trade flows," said the research firm.
The FBM KLCI was down 4.17 points to 1,730.54 at the opening bell, continuing the previous day's decline to put the index on a negative footing for the week.
Oil and commodities-related stocks slid on the back of lower oil prices, including PETRONAS Chemicals falling seven sen to RM4.48, SD Guthrie sliding seven sen to RM6.62 and Press Metal
shaving seven sen to RM7.91
Technology shares were on the rise, with MPI gaining 44 sen to RM48.28, Vitrox climbing 14 sne ot RM9.54 and UWC gaining 13 sen to RM6.68.
Among top actives, Key Asic was up one sne ot nine sne, HHRG dropped 2.5 sne to 13 sne and Scope gained 1.5 sen to 9.5 sen.
