KUALA LUMUR: There was no sign of reprieve for the domestic market as fears over global inflation continued to chip away at investor sentiment.
US Federal Reserve officials are turning hawkish following the latest US inflation report, which was hotter-than-expected. In the lead up to the release of the data, Fed governor Christopher Waller said he would support a quarter-point increase at the December meeting, but noted that 50-basis-point hike in the policy rate was also on the table.
The comments caused ripples of anxiety in the global investment community, which had already turned jittery in the days following a Democrat midterm election win on fears over the future of AI.
Malaysia's FBM KLCI was down 4.73 points to 1,599.43 at 9.12am, tentatively slipping below the 1,600-point level maintained its downward trajectory.
Heavyweight banks were seen stepping back, including Hong Leong Bank down 16 sen to RM21.82, Maybank falling six sen to RM10, Public Bank shedding two sen to RM4.70 and CIMB down four sen to RM7.04.
"Investors are likely to remain selective amid the upcoming 3QFY2026 earnings season, with corporate earnings delivery and management guidance expected to drive stock-specific movements," said Apex Securities in its market outlook.
The research firm reiterated that the phased expansion of FBM KLCI constituents from 30 to 50 stocks could trigger portfolio rebalancing and create short-term volatility in selected counters, while the upcoming Melaka state election could also add to near-term market uncertainty.
"Overall, we maintain a cautious near-term outlook amid external monetary policy risks and domestic uncertainties."
Among leading actives, SKA Capital jumped 14 sen to 57 se upon its debut on the ACE Market.
MMAG was the most actively traded stock, rising one sen to four sen, while Zetrix AI was also actively traded, unchanged at six sen.
