KUALA LUMPUR: Bursa Malaysia opened lower today, reflecting the negative developments on Wall Street overnight due to the escalating tension in the Middle East.
At 9.15 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 2.70 points to 1,539.83 from last Monday's close of 1,542.53.
The benchmark index opened 1.45 points easier at 1,541.08.
On the broader market, decliners led gainers 521 to 92, while 266 counters were unchanged.
Turnover amounted to 463.03 million units worth RM191.62 million.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI slumped to almost the 1,540 level amid a weak regional performance attributed to heightened tension in the Middle East.
He added that selling on the local bourse was broad-based as none of the sectors were spared.
"In the event if prevailing support at the 1,540 mark is smashed decisively, the next support is seen at around the 1,520 level.
"Nonetheless, an immediate rebound is needed thus expect there to be some accumulation activities as a flight of funds will occur from the US considering the high valuation of US stocks.
"Thus, we anticipate the index to hover within the 1,540-1,550 range today," he told Business Times.
Meanwhile, Thong noted that Wall Street closed lower as tension in the Middles East escalates coupled with that March's retail sales came in higher than estimated indicating that inflation in the US is here to stay.
As a result, he said the US 10-year yield ended at almost a six-month high of 4.61 per cent.
He also said despite a strong opening, the Dow Jones Industrial (DJI) Average ended 248 points lower while the Nasdaq declined by 290 points.
He added that in Hong Kong, the Hang Seng Index (HSI) closed 121 points lower ahead of China's gross domestic product (GDP) report for the first quarter of 2024 (1Q24) plus a slew of other economic data over the next few days.