FBM KLCI falls as markets await Fed rate hike decision

FBM KLCI falls as markets await Fed rate hike decision

KUALA LUMPUR: The benchmark FBM KLCI is set to retrace to the 1,450 psychological level in light of Wall Street’s overnight losses.

At 9.05am, the index had fallen 5.4 points to 1,455.7. The broader market was negative with 176 decliners compared with 77 gainers.

Trading volume was 92.79 million shares valued at RM38.68mil.

According to Malacca Securities Research, the widespread rout in US markets as the US Federal Market Open Committee entered its second and final day of its meeting will spill over to regional markets and the local bourse.

“The technology sector may track the losses in Nasdaq overnight and trade on a cautious tone ahead of the FOMC meeting.

“On the other hand, the market may favour the banking sector under the interest rate upcycle environment,” it said in its daily market report.

The research firm noted also that foreign funds remains in a selling mood with a five-day foreign net selling value of RM261.4mil.

Blue chips that opened negative included PETRONAS Chemicals falling nine sen to RM8.61, Maybank dropping three sen to RM8.67 and Sime Darby Plantation dropping six sen to RM4.38.

IHH slid four sen to RM6.10, Tenaga Nasional shed two sen to RM8.78 and Press Metal was down eight sen to RM4.34.

Top Glove, which announced final-quarter losses yesterday, fell 0.5 sen to 70 sen with 13.59 million shares traded, the second highest on the market.

The fall in crude oil prices overnight to about US$90 a barrel also weighed on oil and gas-related counters on Bursa.

Hengyuan Refining slid six sen to RM4.27, Yinson dropped three sen to RM2.21 and Petron Malaysia fell three sen to RM4.74.