KUALA LUMPUR: Bursa Malaysia remained in negative territory at midday on Friday as persistent selling pressure and cautious investor sentiment weighed on the broader market amid global and domestic uncertainties.
At 12.30pm, the FBM KLCI fell 3.4 points, or 0.21%, to 1,582.56 recovering from an intramorning low of 1,581.55.
Market breadth was negative, with 541 losers outnumbering 294 gainers, while 468 counters were unchanged. Turnover stood at 1.597 billion shares valued at RM948.05mil.
Rakuten Trade said foreign fund selling ahead of the Melaka state election this weekend may have contributed to market weakness.
"Despite the cautious market undertone, we continue to advocate investors to bargain hunt at prevailing levels and expect the index to trend within the 1,580-1,600 range today," it said.
Hong Leong Investment Bank (HLIB) Research expects Bursa Malaysia to remain cautious, tracking Wall Street volatility amid concerns over AI valuations, expectations of a more hawkish US Federal Reserve and Middle East tensions.
It said the Democrats' sweeping victory in the US midterm elections could lead to tighter AI regulations, restrictions on data centres and reduced tax incentives, potentially slowing investment in AI infrastructure.
The research house said Nvidia chief executive officer Jensen Huang's abrupt departure had added to concerns over the AI sector.
Any slowdown in AI infrastructure spending could affect Malaysian data centre stocks, foreign direct investment and related investments, although underlying demand for AI remains intact.
Domestically, HLIB Research said foreign fund outflows, corporate earnings scrutiny and portfolio rebalancing ahead of the FBM KLCI's expansion to 50 constituents in December could prolong selling pressure.
It added that uncertainty surrounding the Nov 14 Melaka state election and speculation over an early general election could further weigh on market sentiment.
Among the top losers, United Malacca fell 34 sen to RM6.86, followed by Sunway Construction, which declined 33 sen to RM7.74, and Allianz Malaysia
, down 30 sen to RM19.16.
Dutch Lady and Kuala Lumpur Kepong shed 22 sen each to RM28.28 and RM21.16, respectively, while Tenaga Nasional lost 18 sen to RM12.62.
In contrast, PIE Industrial gained 18 sen to RM1.68, while Carlsberg and United Plantations rose 16 sen each to RM13.26 and RM31.76, respectively.
Sarawak Oil Palms added 14 sen to RM5.45, while Heng Yuan Refining and Master-Pack Group advanced 13 sen each to RM2.73 and RM1.55, respectively.
