KUALA LUMPUR: Bursa Malaysia opened marginally higher following the mixed performance of US markets overnight, says analysts.
The Dow Jones rallied while a plunge in Nvidia dragged down the Nasdaq.
At 9.05am, the FBM KLCI eased 0.46 off-a-point to 1,589.20 from Monday's close of 1,589.66. The benchmark index opened 0.05 points better at 1,589.71.
On the broader market, decliners surpassed gainers 201 to 150, with 300 counters unchanged, 1,767 untraded and 16 suspended.
Turnover stood at 237.32 million units worth RM89.65 million.
Tradeview Capital Sdn Bhd fund manager Neoh Jia Man said this is likely to negatively impact local tech stocks.
"Nonetheless, we believe that rotation into value sectors such as energy, healthcare, and financials will help support Bursa's performance today," he told Business Times.
Rakuten Trade equity research vice-president Thong Pak Leng said the FBM KLCI trended in a tight range and ended in negative territory yesterday as investors were reluctant to make significant moves following the tech sell-off on Wall Street last Friday.
Meanwhile, regional indices finished mixed, with focus on this week's key US inflation data for clues on interest rates.
The US PCE price index, preferred by the Federal Reserve as an inflation gauge, is due out this Friday.
"In the meantime, geopolitics were in the spotlight, marked by the first US presidential debate on Thursday and the first round of the French election over the weekend," added Thong.
On the local front, Thong said he remains cautiously optimistic about the local equity market, driven by enticing valuations and increasing trading volume.
However, uncertainties and increasing global volatility will also significantly influence the market's direction, he added.
"Hence, we expect the benchmark index to maintain its sideways pattern with an upward bias for the week.
"If the benchmark index breaks through the 1,600 resistance and holds it for an extended period, we foresee further upward potential.
"We anticipate the FBM KLCI to trend within the range of 1,590-1,610 for the week," said Thong.