KUALA LUMPUR: Bursa Malaysia ended the morning session lower as traders continued to engage in profit-taking sessions.
At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) lost 3.32 points to 1,446.14 from Tuesday's close of 1,449.46.
In the broader market losers led gainers 382 to 300, with 445 counters unchanged.
SPI Asset Management managing director Stephen Innes said although oil prices have once again declined, exerting pressure on the oil and gas sector, the ongoing strengthening of the US dollar this week continues to moderate commodity trade.
"The persistent concern of a China bond rating downgrade lingers, yet overall, investors seem hesitant to take significant risks until the conclusion of the Federal Reserve (Fed) meeting."
"This will provide clarity on the extent of pushback expected regarding current market dovish expectations," he told Business Times.
Malacca Securities Sdn Bhd said the FBM KLCI declined for another session amid profit taking activities.
It also said the US jobs opening was the lowest level since early 2021 in October, and the market's narrative for the Fed is that it has ended with the interest rates upcycle and could be looking at a rate cut as early as March next year. "Thus, with the expectation of an interest rate cut next year, we think it may provide buying support to the local equities," said Malacca Securities.
The research house said as the Technology-heavy Nasdaq rose against the weaker backdrop in the US, the buying interest may build up in the Technology sector on Bursa exchange.
"Meanwhile, we think traders may avoid the oil and gas sector on the back of weak Brent crude oil price. "Following the November reporting month, we opine that traders will reassess the earnings, we favour selected stocks within the real estate investment trust, construction, property, building materials and technology sectors," it added.
