KUALA LUMPUR: Bursa Malaysia opened lower on Thursday, dragged down by losses in technology and semiconductor-related stocks following an overnight sell-off on Wall Street.
The decline came as hotter-than-expected US inflation data reignited concerns over further interest rate hikes by the Federal Reserve.
On Wall Street, the S&P 500 fell 1.11% to 7,718.94 points, its biggest one-day decline since July 29, while the Nasdaq dropped 1.88% to 26,692.87 points, marking its steepest daily fall since July 23.
The Dow Jones Industrial Average slipped 0.09% to 51,621.48 points.
Back home, the FBM KLCI fell 9.42 points, or 0.58%, to 1,618.30 as at 9.19am, after opening 2.62 points lower at 1,625.10.
Technology and semiconductor-related stocks were among the top losers in early trade on Bursa Malaysia, led by Malaysian Pacific Industries
, which fell RM1.32 to RM40.68, UMS Integration, which shed 58 sen to RM7.75, and ViTrox, which declined 46 sen to RM10.18.
UWC lost 43 sen to RM7.30, while MI Technovation slipped 36 sen to RM6.34 and Pentamaster declined 17 sen to RM5.40.
Consumer stocks were among the top gainers, led by Carlsberg, which rose 28 sen to RM12.30, Heineken, which gained 24 sen to RM13.24, and F&N, which added six sen to RM20.
Berjaya Research Sdn Bhd said the FBM KLCI could face near-term profit-taking after four consecutive sessions of gains, as higher US inflation in September raised the prospect of another interest rate hike by the end of October or in December 2026.
The research house said investors would also monitor upcoming US producer price index (PPI) and retail sales data for further indications of inflationary pressures and consumer spending resilience.
“Against this backdrop, we expect the FBM KLCI to trade cautiously in the near term, as signs of quick profit-taking are emerging after the key index came off from its intraday high yesterday.
“The immediate resistances are located at 1,630-1,640 points. Meanwhile, the immediate support is pegged at the 1,600 psychological level, followed by 1,580 points,” Berjaya Research said.
The broader market is expected to remain cautious amid prevailing external macroeconomic uncertainties, while the overnight pullback on Nasdaq could weigh on technology stocks on Bursa Malaysia today.
Meanwhile, Rakuten Trade expects bargain hunting to persist, although gains could be capped by profit-taking after the FBM KLCI rose 20 points over the past three sessions.
The brokerage anticipates the index to trade within the 1,620 to 1,635 range today.
