KUALA LUMPUR: Bursa Malaysia closed in the red Wednesday on profit taking, in line with regional markets.
At 5pm, FTSE Bursa Malaysia (FBM) KLCI was down 0.21 per cent or 3.19 points to 1,552.40 versus Tuesday's close of 1,555.59.
The key index opened at 1,554.10 and moved between 1,547.49 and 1,554.95 throughout the day.
The broader market was negative with decliners surpassing gainers 652 to 386 while 459 counters remained unchanged.
The index board was a sea of red with FBM100 losing 0.20 per cent or 22.65 points to 11,175.97, FBM Emas shed 0.24 per cent or 27.38 points to 11,521.83 and FBM Ace dropped 0.88 per cent or 43.11 points to 4,837.49.
SPI Asset Management managing director Stephen Innes said the market has been on a roll of late and is likely experiencing some profit taking activities, in line with the trend in regional markets.
He said software company Nvidia Corp's will report earnings later in the New York session, which could influence local markets given that a large percentage of the companies' revenues are Asia centric.
"Chip companies have been turning to Malaysia to supply the components to power the artificial intelligence revolution.
"In addition, some of the commodity enthusiasm from yesterday's China five-year rate cut is wearing off as oil prices are down about 0.50 per cent today," he told Business Times.
On weak sentiment surrounding the ringgit, Innes said it will have a mildly negative effect on the stock exchange but it might have some positive note to it.
"Given that we are in or very near overshoot territory, converting US dollar or Singapore dollar to invest in Malaysia is actually appealing at these levels.
"Once the currency regains strength, your total return invested benefits, if you leave your currency unhedged. In other words, if you buy a local asset at 4.80 and the ringgit appreciates to 4.50, you can pick up very good currency returns," he added.