Bursa Malaysia opens lower as market awaits US interest rate decision

MALAYSIA: Bursa Malaysia opened on a weaker note on Mar 19, mirroring Wall Street’s overnight decline as investors remained cautious ahead of the US Federal Reserve’s interest rate decision later on Wednesday (March 19). The market sentiment was subdued, reflecting broader global uncertainties.

At 9:05 a.m., the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 15.60 points to 1,512, down from Monday’s close of 1,527.81. The benchmark index had already started lower, opening 14.52 points down at 1,513.29, according to Free Malaysia Today (FMT).

Across the broader market, decliners outnumbered gainers 241 to 109, while 272 counters remained unchanged, 1,814 were untraded, and seven were suspended. Trading volume stood at 133.02 million shares worth RM129.23 million (S$38.83 million). The local market was playing catch-up after being closed yesterday for the Nuzul Al-Quran public holiday.

According to Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng, investor interest in local stocks remains weak, as reflected in the FBM KLCI’s inability to break the 1,530 resistance level. However, he noted that Bursa Malaysia could see some recovery, especially following stronger performances in regional markets on Tuesday (March 18). He expects the benchmark index to trade between 1,525 and 1,535 throughout the day.

Heavyweight counters record losses

FMT reported that among actively traded stocks, Sapura Energy and Elridge Energy both held steady at 4.5 sen and 47 sen, respectively. Nationgate dropped four sen to RM1.31, SNS Network dipped one sen to 43 sen, while Top Glove gained three sen to 89.5 sen.

Several blue-chip stocks saw early declines. Maybank and IHH Healthcare each lost two sen, settling at RM10.40 and RM7.07, respectively. Public Bank slipped six sen to RM4.48, while CIMB experienced a larger drop of 24 sen to RM7.01. Meanwhile, Tenaga Nasional remained unchanged at RM13.56.

Sectoral performance reflects broad-based decline

Weakness in the market was reflected across key sectoral indices. The FBM Emas Index fell 94.73 points to 11,329.75, while the FBMT 100 Index declined 99.08 points to 11,088.72. The FBM Emas Shariah Index also dropped 68.61 points to 11,015.39.

The FBM 70 Index slipped 84.08 points to 16,239.67, but the FBM ACE Index was an exception, posting a 15.64-point gain to 4,706.79. Among individual sectors, the Industrial Products and Services Index edged down 0.99 of a point to 154.07, while the Energy Index fell 2.83 points to 732.53. The Financial Services Index suffered the largest drop, plunging 205.62 points to 18,590.52. The Plantation Index also saw losses, slipping 18.68 points to 7,397.57, as reported by FMT.

Investors remain cautious ahead of Fed decision

As traders await the US Federal Open Market Committee (FOMC) interest rate decision, market sentiment is expected to remain cautious. Investors are closely monitoring the Fed’s stance, which could have significant implications for capital flows and market direction. With external factors weighing on sentiment, Bursa Malaysia’s performance for the rest of the trading day will likely hinge on global market movements and investor reaction to the Fed’s announcement.

Read also: Ringgit opens higher against US dollar ahead of key Fed interest rate decision

Featured image by Freepik (for illustration purposes only)