KUALA LUMPUR: Bursa Malaysia opened mixed in early trade but it is expected to bounce back as investors are eagerly waiting for the Bank of Japan's (BOJ) big announcement on Tuesday.
This comes as investors are feeling upbeat about investing in technology, which has balanced out the impact of rising US bond yields, said SPI Asset Management managing director Stephen Innes.
At 9.15 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 4.39 points to 1,549.25 from Monday's close of 1,553.64.
The benchmark index opened 2.05 points easier at 1,551.59.
In the broader market, gainers outpaced decliners 222 to 202, while 326 counters were unchanged, 1,544 untraded and nine suspended.
Turnover amounted to 442.98 million units worth RM189.57 million.
Innes said that the positive outlook might affect local markets, which are currently getting a boost from China's support and a set of good economic data released on Monday.
"This could help keep global markets stable, which in turn could benefit the local markets," he told Business Times.
He said if the BOJ goes ahead with a full-scale plan that includes changing interest rates, stopping YCC, and ceasing purchases of risky assets, it could make the global market very unpredictable and turbulent.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said yesterday the FBM KLCI ended flat as overall sentiment is still cautious notwithstanding the ongoing accumulation of blue chips.
"This time around we believe the buying is predominantly from the local institutions as more funds are being ploughed back into the domestic market thus expect the index to hover within the 1,550-1,560 range today.
"Meanwhile, the Brent crude jumped to almost US$87 per barrel underpinned by strong demand hence may see an interest shift to the Energy counters today," he added.