FBM KLCI opens on a slide on lack of fresh catalysts

KUALA LUMPUR: The FBM KLCI opened Monday to more uncertainty as the absence of trading leads put investors into wait-and-see mode.

At 9am, the key index was down 2.16 points to 1,540.23, which was in line with the fall in US markets last Friday.

Of the three major US indices, only the Nasdaq was slightly higher in the previous session as technology stocks continued to rally on the AI theme and expectations of lower interest rates.

The US personal consumption expenditure (PCE) report due out on Friday will be the next big indicator of global inflation rates.

It is highly anticipated by investors as economists say hotter-than-expected PCE figures will give the Federal Reserve reason to forego a rate cut at its June meeting.

Meanwhile, having closed last Friday on a negative note, the Malaysian benchmark stock index is expected to remain directionless and in search of fresh catalysts, says Apex Securities Research.

On the agenda today is Malaysia’s latest inflation figures as well as the Securities Commission’s 2023 annual report, which could offer some insight into the current domestic economic and investing landscape.

However, investor attention will be keenly tuned into the global interest rate environment, which has been dictating the direction of fund flows.

“Going forward, investors will be keeping a close tab on Bank of Japan’s monetary policy minutes meeting, which may provide guidance on the pace of interest rate hikes,” said Apex in its market review.

There was heavy selling of Malaysia’s blue chips on Monday, including Kuala Lumpur Kepong down 34 sen to RM22.06, Tenaga Nasional eight sen to RM11.48 and CelcomDigi sliding 12 sen to RM4.28

Bank stocks were mixed, with Maybank down four sen to RM9.55, Hong Leong Bank falling 10 sen to MR19.34, Public Bank sliding one sen to RM4.23 and CIMB gaining two sen to RM6.57.

Of actives, Velesto rose one sen to 29.5 sen and Eversendai climbed two sen to 35 sen.

Highway operator Projek Lintasan Kota Holdings, meanwhile, opened on the Main Market of Bursa Malaysia unchanged from its initial public offering price of 95 sen, but picked up to 99 sen on growing interest

At the time of writing, the share was the third most actively traded with 21.61 million units crossing hands.