KUALA LUMPUR: Bursa Malaysia opened lower trailing Wall Street's tumble after higher than expected US inflation pushed back market expectations for US rate cuts.
At 9.15am, FTSE Bursa Malaysia (FBM) KLCI was down 0.17 per cent or 2.63 points to 1,528.74 versus Tuesday's close of 1,531.37.
The benchmark index opened 0.2 per cent or 3.58 points lower at 1,527.79.
The broader market saw losers led gainers 266 to 126 while 263 counters remained unchanged.
Malacca Securities Sdn Bhd said the FBM KLCI has moved out of the consolidation phase with strong buying interest within the banking sector after the Chinese New Year break.
"Local trading sentiment should stay positive with the trading catalysts revolving around the data centre theme as well as mega infrastructure projects and the soon-open-for-bidding large scale solar 5. "Key sectors to focus will be construction, property, utilities and renewable energy," it said.
It also expected a spike in shipping rates with the ongoing tension in the Red Sea region, hence benefiting transportation & logistics companies.
Meanwhile, the US CPI data pushed back the market expectation of the interest rate cuts, translating to higher US Treasury yields and stronger dollar. "Nevertheless, we expect the buying support may extend on the local front supported by several domestic catalysts at least for the near term."
