KUALA LUMPUR: The FBM KLCI made a slow start on Wednesday as the prevailing risk-off environment meant traders were hesitant to capitalise on Wall Street's positive overnight performance
"The pullback in oil prices and easing U.S. Treasury yields may provide some relief to market sentiment by moderating inflationary pressures and borrowing-cost concerns.
"However, ongoing geopolitical uncertainties and weakness in regional technology stocks could continue to dampen risk appetite," said Apex Securities in a note.
The research firm suggests that investor attention will be on Tesla's and Meta’s upcoming earnings for further indications of AI investment returns and corporate spending plans, which could influence global technology sentiment.
Apex also expects selective bargain-hunting given the FBM KLCI's recent decline, which could see buying in fundamentally sound stocks with attractive valuations and dividend yields. "Nevertheless, a sustained recovery will likely depend on stabilising foreign flows and improved market breadth," it added.
At 9.07am, the FBM KLCI was a fraction higher to graze the 1,600 psychological level, a positive breach of which could signal a recovery for the index.
Bank shares showed signs of positive retracement, including Hong Leong Bank up 18 sen to RM21.38, RHB gaining one sen to RM7.31, and CIMB adding two sen to RM7.17. There was also a jump in IHH Healthcare, rising eight sen to RM7.99.
Meanwhile, NWE made its debut on the ACE Market, rising two sen to 22 sen as the most active share with 34.6 million units traded.
In global oil markets, Brent crude futures for December delivery ended slightly lower in the previous session, but continued to hover near the US$109 a barrel level.
