Kuala Lumpur: Bursa Malaysia opened marginally lower in early trade Thursday as investors responded to the unexpectedly high US inflation data, which is anticipated to deter the Federal Reserve from reducing interest rates.
According to BERNAMA News Agency, at 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped by 0.43 of-a-point to 1,602.62. The market barometer had opened 1.07 points lower at 1,601.98 compared to the previous day's close of 1,603.05. Despite this, the broader market was slightly positive, with 134 gainers surpassing 126 losers, while 247 counters remained unchanged, 1,811 were untraded, and 23 were suspended. The turnover amounted to 150 million units worth RM60.85 million.
Rakuten Trade Sdn Bhd's vice president of equity research, Thong Pak Leng, highlighted that the US January Consumer Price Index (CPI) rose by 0.5 percent, marking the largest increase since August 2023, while the core CPI climbed 0.4 percent. This inflationary pressure resulted in a lower close for Wall Street, and the US 10-year yield spiked to 4.627 percent. Thong noted that the ongoing uncertainty and high valuations in the US market might redirect some funds toward Asian markets, expecting the index to trend within the 1,600-1,610 range.
Meanwhile, Malacca Securities Sdn Bhd anticipates sustained buying interest in the local market, particularly within the banking and real estate investment trust (REIT) sectors. The firm also sees potential opportunities in glove stocks amid ongoing tariff threats on Chinese products, along with a stronger US dollar outlook. They expect earnings to materialize for stocks tied to the data center supply chain.
In the local market, heavyweights such as Maybank and Tenaga Nasional remained flat at RM10.60 and RM13.94, respectively. CIMB eased five sen to RM8.35, Public Bank increased by one sen to RM4.51, while IHH Healthcare gained two sen to RM7.30.
Among the active counters, Ingenieur Gudang, Sarawak Cable, and Velesto Energy remained unchanged at 5.5 sen, 13 sen, and 18.5 sen, respectively. Harvest Miracle fell by half-a-sen to 15.5 sen, and Silver Ridge increased by half-a-sen to 58 sen.
On the index board, the FBM Emas Index added 7.53 points to 12,199.65, the FBMT 100 Index rose 8.18 points to 11,903.54, and the FBM Emas Shariah Index gained 13.86 points to 11,991.86. The FBM 70 Index increased by 57.21 points to 18,037, and the FBM ACE Index improved by 0.97 of-a-point to 5,218.28. Sector-wise, the Financial Services Index climbed by 2.20 points to 19,436.60, and the Plantation Index improved by 7.73 points to 7,524.27. The Industrial Products and Services Index edged up by 0.10 of-a-point to 164.37, and the Energy Index ticked up by 0.57 of-a-point to 818.84.