KUALA LUMPUR: Bursa Malaysia closed in negative territory along with regional markets as traders priced in a later start to US federal rate cuts.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) lost 2.04 points to 1,529.33 from Tuesday's close of 1,531.37.
The KLCI opened 3.58 points easier at 1,527.79, and moved between 1,521.79 and 1,530.95 throughout the day.
Decliners led gainers 503 to 387 on the broader market, while 509 counters were unchanged, 901 untraded and 10 others suspended.
Key regional indices were also in negative territory after an unexpected rise in US inflation on Tuesday, where the consumer price index (CPI) increased by 3.1 per cent on an annual basis, exceeding economists' forecast of 2.9 per cent.
SPI Asset Management managing director Stephen Innes said considering the significant push higher in U.S. yields and the steep fall in U.S. markets, the Bursa Malaysia has held up relatively well today, picking up support from higher oil prices as the organisation of the petroleum exporting countries (OPEC) + continues to limit supply to global markets.
"The harsh data set surprised many investors and was a stark reminder of the persistent inflationary pressures in the economy."This came as a bitter pill for those who may have interpreted the relatively benign annual inflation revisions released last week as something akin to an all-clear in the US inflation front, hence easy sailing to the Federal Reserve cut in May," he told Business Times.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said domestically, the benchmark index is well supported above 1,520 and is holding strongly the crucial breakout line at 1,526-27.
"We hope the FBM KLCI can sustain this level for an extended period as a solid foundation for further advancement. "As such we are maintaining our weekly FBM KLCI target between 1,520-1,540," he added.-ends-