KUALA LUMPUR (Nov 9): The FBM KLCI fell with Asian shares today after US stocks' overnight drop as investors anticipated the US will keep to its plan to raise interest rates gradually.
At Bursa Malaysia today, the KLCI opened 2.65 points lower at 1,718.77 at 9am. At 9:06am, the KLCI declined 3.18 points to 1,718.24.
"While we think there could be further upside on KLCI as technicals are turning positive, profit taking activities could emerge over the near term to digest the recent rebound, coupled with the weaker oil prices and Moody’s downgrade on Petronas’ outlook (from stable to negative) as well as the ongoing reporting season could provide negative surprises amid the sluggish business environment after few of the mega construction projects were being cancelled/postponed under the PH (Pakatan Harapan)-led government," Hong Leong Investment Bank Bhd wrote in a note today.
Across world markets, Reuters reported that Asian stocks dipped on Friday as Wall Street took a breather after the Federal Reserve kept intact its plans to continue raising interest rates at a gradual pace, with a fourth hike for this year expected next month. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.06 percent. The index was still headed for a sizable gain of more than 6 percent this week, during which it rose to a one-month high.
It was reported that the US' S&P 500 lost 0.25 percent and the Nasdaq shed 0.53 percent on Thursday after the Fed's statement, and energy stocks were the biggest drag on the S&P as US crude oil prices fell.