KUALA LUMPUR: Bursa Malaysia opened in the red today, as volatility took precedence with the key index wiping out all the previous two sessions of gains yesterday.
The FTSE Bursa Malaysia KLCI (FBM KLCI) dropped to its lowest point in two weeks, dragged by a decline in investor optimism.
Following a significant drop in investor confidence, the market will focus on Malaysia's economic report due at noon, hoping for better-than-expected results.
At 9.36am, the FBM KLCI fell 1.67 points to 1,446.31 from 1,447.98 at Thursday's close.
The key index opened at 1,449.23.
On the broader market, losers surpassed gainers 342 to 154, while 310 counters were unchanged, 1,542 untraded and 29 others suspended.
Turnover stood at 546.91 million units worth RM219.92 million.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI declined to below the 1,450 level as profit-taking activities emerged after a three-day uptrend.
He said the selling may be from foreign funds as it was broad-based amid regional weaknesses.
"Though we reckon market's undertone has turned cautious attributed mainly to the headwinds from both China and the US, the index needs to show an immediate rebound to avoid being trap into another prolonged consolidation phase.
"For today, we expect the index to hover within the 1,445 to 1,455 range," he told the New Straits Times.
Malacca Securities Research said looking ahead, investors will be keeping an eye on the key economic data; Malaysia's second quarter of 2023 (2Q23) gross domestic product (GDP) data set to be released today.
"We believe the market may cheer should the reported number that came above the Bloomberg consensus expectations of 3.6 per cent year-on-year (YoY) growth," it said in its market review.
The firm added that the property sector may extend its positive movement with most of the property players turning more optimistic in the first half of 2024 (1H24) as guided by the Housing Developers' Association Malaysia (REHDA).
"The strong vehicles announced data may boost the automotive-related stocks.
"Meanwhile, the energy sector may advance in line with higher crude oil prices," it noted.