KUALA LUMPUR: Bursa Malaysia experienced a decline in the morning session, aligning with regional trends, as selling activities impacted selected heavyweight stocks.
As of 12:30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 4.54 points to 1,489.33 from the previous day's closing at 1,493.87.
The FBM KLCI opened at 1,491.89, showing a decrease of 1.98 points, and fluctuated between 1,487.52 and 1,494.32 throughout the session.
In the broader market context, losers outnumbered gainers significantly, with a ratio of 723 to 225.
Additionally, 385 counters remained unchanged, 910 were untraded, and 17 were suspended.
The total turnover amounted to 2.90 billion units valued at RM1.55 billion.
Malacca Securities Sdn Bhd mentioned that the FBM KLCI exhibited volatility near the psychological level of 1,500, influenced by overall market sentiment, which was unsettled by several counters reaching their limit-down during the session.
"The US stock markets ended mostly lower on the back of rising US Treasury yield following the comments from one of the Fed's officials who commented that the Fed should not rush towards cutting the interest rates.
"Closer to home, we believe the trading tone would stay fairly negative as we expect some of the companies that have traded significantly lower could bring more margin calls, thus affecting the overall market sentiment," it said.
According to Malacca Securities, the Brent oil price remains steady, trading within the US$76-79 per barrel (/bbl) range on the commodity markets.
In a note today Malacca Securities highlighted despite fluctuations in specific counters amid high volatility, the overall outlook for 2024 is anticipated to remain consistent.
"Traders are advised to concentrate on potential developments such as the potential revival of the KL-Singapore high-speed rail (HSR) project, investments related to Johor themes, and the relaxation of requirements for the Malaysia My Second Home (MM2H) program.
"We expect the fundamentally solid companies that are within the Construction, Property, Building Material and Renewable Energy to benefit under this scenario.
Malacca Securities recommends that traders concentrate on robust fundamental companies to navigate through the prevailing market volatility effectively.