KUALA LUMPUR: Bursa Malaysia opened marginally higher on the first day of the trading week, although sentiment is expected to turn cautious amid the heightened volatility due to tension in the Middle East.
At 9.20am, FTSE Bursa Malaysia (FBM) KLCI was up 0.43 per cent or 6.72 points, to 1,554.29 versus Friday's close of 1,547.47.
The key index opened 0.06 per cent or a point higher, to 1,548.57.
The broader market saw gainers lead decliners 290 to 161, while 272 counters were unchanged.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said the FBM KLCI managed to close positively last week, underpinned by accumulation from local institutions amid a regional bloodbath.
"Nonetheless, we believe trading will be muted today as sentiment would have turned cautious in view of the heightened volatility. Therefore, we expect the index to hover within the 1,540–1,550 range today," he said in a note.
On the index board, FBM100 lost 0.07 per cent to 11,247.95, FBM Emas tumbled 0.18 per cent to 11,596.07, and FBM Ace fell 1.79 per cent to 4,858.98.
Thong said on the global front, Wall Street closed mixed amid the mounting tension in the Middle east.
Confidence was further eroded over the uncertainty of the uncertainty of the interest rate coupled with the earnings of some megacaps this week, which should instigate some profit-taking activities.
The Dow Jones Industrial Average added 211 points, and the Nasdaq lost 319 points as the US 10-year yield eased marginally to 4.621 per cent.
"The situation in Hong Kong was also unpromising, with the Hang Seng Index losing 162 points as traders sold equities in favour of a safe haven, namely gold," said Thong.
