KUALA LUMPUR (June 10): The FBM KLCI is seen slipping further today, although there could be pockets of buying opportunity on bargain hunting.
Local investor sentiment is still dampened by the weaker ringgit versus the US dollar, with the dollar quoted at 3.7525 ringgit.
U.S. stocks ended Tuesday virtually unchanged after a choppy trading day with investors hesitant to make bets while a sharp increase in oil prices failed to boost energy stocks, according to Reuters.
The benchmark S&P 500 index's best performer was the consumer staples sector, which is seen as a defensive bet because consumers still buy basics even in a downturn, it said.
Jupiter Securities Sdn Bhd chief market strategist Benny Lee said: “Most regional markets are undergoing a correction, and the weakened ringgit against US dollar has pressured the KLCI."
"Also, palm oil prices has started to drop as well, while foreign institutions are still selling this week. All these factors are giving a bearish sentiment over the market,” Lee said.
Although the ringgit was traded firmer at 3.7525 against the US dollar today, analysts and economists said the ringgit may weaken further to 3.8000 in the near term.