KUALA LUMPUR: Bursa Malaysia ended trading mixed amid a major sell-off in global equity markets as the US 10-year yield rebounded to 4.95 per cent.
At 5pm, the FBM KLCI eased 1.91 points to 1,440.60 from Wednesday's closing of 1,442.51.
The benchmark index opened 0.52 of a point higher at 1,443.03.
On the broader market however, gainers led losers 436 to 402 while 448 counters traded unchanged on the Bursa Malaysia today.
Turnover was at 3.232 billion shares valued at RM1.986 billion.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said investors are hoping for a US Federal Reserve rate cut to stimulate the economy.
"However, this has not happened yet because there have been positive job market reports, suggesting that the economy is doing well and may not be heading towards a recession. But, at the same time, they could cause prices to go up (inflation)," he said.
The continuous escalation of tensions in the Middle East, showing no signs of easing, has agitated risk sentiment and negatively affected equity markets, said Thong.
On the local front, SPI Asset Management managing partner Stephen Innes said investors are trying to sort out the implications of higher US yields, geopolitical concern in the Middle east and China.
"They are also keeping an eye on the deteriorating currency markets as the strong US dollar typically is a bad sign for local markets from a global inflow perspective," he told Business Times.
The bounce from China stimulus faded regionally as investors turned focus back to regional and global economic concerns against the backdrop of tightening financial conditions, said Innes.
Meanwhile, Thong chose to remain cautious on the short-term trajectory of the local market as it remains heavily influenced by external factors, including regional volatility, interest rates, and geopolitical tensions.
"However, we expect stock accumulation to persist during market dips. "Hence, we foresee that the FBM KLCI will continue to trend within the range of 1,435-1,445 towards the weekend, with support at 1,430 and resistance at 1,460," he added.