KUALA LUMPUR: Bursa Malaysia was a sea of red today bucking Wall Street's euphoria on Donald Trump's return as US President as projected market volatility with a Trump win took hold.
Trump's tariff policies have renewed trade uncertainty and fear of a potential hike in US inflation delaying the US Federal Reserve's rate cut campaign.
Energy and technology stocks were the only gainers.
The benchmark index opened 1.97 points higher at 1,636 points, with the broader market also in the positive before tipping into negative territory.
As at 9.51 am, the FTSE Bursa Malaysia KLCI was down two points while losers led gainers 458 to 292 in the broader market.426 stocks were unchanged.
Rakuten Trade Sdn Bhd's equity research vice president Thong Pak Leng said the recent upward movement in the FBM KLCI suggests some buying interest, which may provide a short-term rebound opportunity. Furthermore, he noted that BNM's decision to hold the OPR at 3.00 per cent adds clarity to the local market landscape. "We believe plantation stocks will remain a key focus, with crude palm oil (CPO) futures approaching RM5,000 per tonne.
"We anticipate the benchmark index to trend within the range of 1,630 to 1,640 today," he told Business Times.
Meanwhile, Thong also said Wall Street closed sharply higher after Donald Trump secured victory in the 2024 presidential election.
He added that, across Asia, stocks ended mostly higher, driven by positive cues from Wall Street overnight.