Investors are expected to take a cautious stance ahead of the critical Fed meeting

BURSA Malaysia retreated at the opening today, tracking Wall Street’s slip overnight and on caution ahead of the US Federal Reserve’s (Fed) decision on interest rates tomorrow.

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 5.73 points to 1,454.65 compared to yesterday’s close of 1,460.38.

The market bellwether opened lower by 2.74 points at 1,457.64.

The market breadth was negative with decliners leading advancers 130 to 115, while 215 counters were unchanged, 1,844 untraded and 13 others suspended.

Turnover stood at 172.69 million units worth RM49.75 million.

Wall Street ended lower yesterday ahead of the Fed’s decision on rate hikes with the Dow Jones Index losing 0.39% to close at 32,732.95, while the S&P 500 and Nasdaq declined 0.75% and 1.03% to end at 3,871.98 and 10,988.15, respectively.

Malacca Securities Sdn Bhd said profit-taking activities on Wall Street after a significant rally would cap the upside potential of the local bourse.

The brokerage expects investors to take a cautious stance ahead of the critical Fed meeting that will conclude on Nov 2 (US time).

“Meanwhile, traders may focus on the 15th General Election theme and position themselves on government-linked companies.

“Commodities-wise, Brent crude oil is gradually declining below US$95 (RM448.40) per barrel but is hovering above US$90 per barrel, while the crude palm oil price recouped above RM4,100 per tonne,” it said in a note today.

Among the heavyweight counters, Malayan Banking Bhd and IHH Healthcare Bhd were flat at RM8.59 and RM5.95, respectively.

CIMB Group Holdings Bhd and Tenaga Nasional Bhd lost two sen each to RM5.50 and RM8.40, respectively, while Petronas Chemicals Group Bhd added one sen to RM8.73.

Among the actives, Advance Synergy Bhd fell one sen to seven sen, Top Glove Corp Bhd dropped half-a-sen to 79 sen, while Serba Dinamik Holdings Bhd, Alam Maritim Resources Bhd and Tanco Holdings Bhd were all flat at two sen, three sen, and 37.5 sen, respectively.

On the index board, the FBM Emas Index slipped 32.04 points to 10,318.8, the FBM 70 weakened 22.76 points to 12,243.97 and the FBM T100 Index lost 34.73 points to 10,055.19.

The FBM Emas Shariah Index lost 29.09 points to 10,382.02, while the FBM ACE improved by 9.28 points to 4,868.21. 

Sector-wise, the Energy Index was 4.22 points easier at 694.28, the Financial Services Index contracted 67.42 points to 16,399.26 and the Industrial Products and Services Index edged down 0.37 of a point to 175.43.

The Plantation Index went up 9.92 points to 6,889.84. — Bernama / pic TMR