KUALA LUMPUR: Bursa Malaysia ended the trading session lower on Friday, mirroring regional trends amid rising concerns regarding potential Federal Reserve rate cuts.
The decline also followed the release of stronger US inflation data, with the consumer price index rising at an annual pace of 2.4 per cent in September, slightly above economists' expectations of 2.3 per cent.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 7.39 points or 0.45 per cent, settling at 1,633.55, a decline from Thursday's closing value.
The benchmark index opened the day 5.15 points lower at 1,635.79 and fluctuated within a range of 1,631.89 to 1,643.07 throughout the trading session.
On the broader market, decliners outnumbered gainers 546 to 420, with 526 counters unchanged.
Turnover rose to 2.29 billion units, valued at RM2.67 billion, compared to yesterday's 2.63 billion units worth RM2.30 billion.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remains in consolidation mode and we expect this trend will continue into next week until new catalysts emerged.
He advised investors to remain cautious in the short term and adopt a wait-and-see approach until the market direction becomes clearer.
"For those with a long-term perspective, accumulating on dips near the 1,630 support level could be a strategic move.
"The index has struggled to break above key moving averages, namely the 20-day and 50-day exponential moving averages.
"In the near term, the FBM KLCI is likely to consolidate within the 1,630-1,650 range, and a breakout above 1,650 would indicate a more sustained upward trend," he told Business Times.
Thong said the outlook over long term remains optimistic, supported by improving economic conditions, stronger corporate earnings, and significant foreign direct investments, which are expected to boost market momentum.