KUALA LUMPUR: Bursa Malaysia started Friday's session on a cautious note, tracking overnight weakness on Wall Street amid renewed worries over AI spending.
Overnight, the S&P 500 and Nasdaq tumbled, with the Nasdaq posting its steepest daily decline since early June, as high-profile earnings reports reignited concerns over heavy AI spending.
The Dow Jones Industrial Average edged up 0.02% to 52,867.98, while the S&P 500 fell 1.21% to 7,663.43 and the Nasdaq Composite plunged 2.60% to 26,008.86.
The FBM KLCI slipped 0.95 points, or 0.06%, to 1,607.19 at 9.22am, after opening 0.49 points lower at 1,607.63.
Among the top gainers, PETRONAS Chemicals rose 23 sen to RM4.72, MISC gained 14 sen to RM8.39 and Hengyuan added eight sen to RM4.13.
Carlsberg edged up six sen to RM12.34, while Heineken Malaysia
and Kerjaya Prospek gained six sen each to RM13.06 and RM3.36, respectively.
In contrast, Malaysian Pacific Industries fell 86 sen to RM39.44, Batu Kawan shed 30 sen to RM19, and LPI Capital declined 26 sen to RM13.
United Plantations slipped 18 sen to RM30.14, ViTrox lost 12 sen to RM10.46, while Pentamaster eased 11 sen to RM5.37.
Berjaya Research Sdn Bhd said the FBM KLCI could face profit-taking following its recent recovery, amid concerns over AI-related spending and escalating geopolitical tensions in the Middle East.
Investors will also monitor the upcoming US consumer sentiment data from the University of Michigan for clues on inflation expectations and the Federal Reserve’s policy outlook, while regional market movements are likely to influence near-term trading.
“The FBM KLCI could attempt to defend the 1,600 level as base building takes shape, with the immediate resistances at 1,612-1,620 points. Meanwhile, the immediate support remains pegged at 1,592 points, followed by 1,580 points,” Berjaya Research said.
The research house said the broader market is likely to remain cautious amid external uncertainties and selective buying interest, while the overnight Nasdaq sell-off over AI spending concerns could weigh on technology stocks on Bursa Malaysia.
Meanwhile, Rakuten Trade said the local bourse remained undervalued, trading at a price-to-earnings ratio of about 15 times against its historical average of 16.5 times.
