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Bursa Malaysia opens lower as Middle East developments spook investors

KUALA LUMPUR: Bursa Malaysia started the day lower, reflecting cautious sentiments influenced by developments in the Middle East.

The key index, theFTSE Bursa Malaysia KLCI (FBM KLCI) opened 0.36 per cent lower to 1,545.45, compared to its last closing of 1,551.04.

As at 9.45am, it was trading 0.39 per cent lower at 1,545 points.

Meanwhile, the broader market was negative as  losers led gainers 737 to 155 while 304 counters were unchanged.

Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng expects the bourse to mirror the decline seen on Wall Street last Friday, to trade within the 1,550 and 1,560 range.

"The lack of fresh catalysts plus the geopolitical tension saw trading on the local bourse to be rather muted last week."For today, we expect the trading pattern to be lacklustre attune to the decline on Wall Street hence anticipate the index to hover within the 1,550-1,560 range," he said.

Wall Street's stocks slumped last week as sentiment was again dented by inflationary worries coupled with the escalating tension in the Middle east.

Thong noted with Iran coming into the picture against Israel thus pushing crude oil prices higher, investors are wary that inflation will weigh on the market.

"As such, the Dow Jones Industrial (DJI) Average lost 476 points while the Nasdaq declined by 276 points as the US 10-year yield slid slightly to 4.51 per cent."In Hong Kong, the Hang Seng Index (HSI) fell 373 points as the Chinese Yuan hit a 5-month low against the greenback," he added.

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