KUALA LUMPUR: Bursa Malaysia opened mixed before the FTSE Bursa Malaysia KLCI buckled under selling pressure and continued on its downtrend from yesterday.
Wall Street also finished lower due to profit taking activities in big tech stocks.
Moreover, concerns among investors about an escalation in the conflict between Israel and Hamas have the potential to disrupt the outlook for the Middle East, possibly causing crude oil prices to surge and leading to an increase in inflation.
At 9.05am, FBM KLCI eased 0.42 of a point to 1,450.6 from Monday's close of 1,451.02.
The index opened 0.11 of a point higher at 1,451.13.
Market breadth was negative, with decliners beating gainers 167 to 106, while 229 counters were unchanged, 1,812 untraded and 13 others suspended.
Turnover amounted to 140.98 million units worth RM48.22 million.
Tradeview Capital fund manager Neoh Jia Man anticipates that the day's direction will mirror that of regional markets, likely influenced by the Caixin China Services index scheduled for release today.
"With no significant local catalysts, we believe investors are expected to maintain a cautious stance throughout the week, in light of the upcoming release of key economic data in the U.S," he told Business Times.
Rakuten Trade equity research vice-president Thong Pak Leng said yesterday the FBM KLCI closed lower as investors exercised caution in response to the regional weakness.
"Despite this, we prefer to stay alert given the heightened global volatility although bargain hunting may prevail. "Furthermore, the valuation of the benchmark index remains cheap as compared to its regional peers, hence we anticipate the FBM KLCI to stay in consolidation mode within the 1,445-1,455 range for today," said Thong.