KUALA LUMPUR: Bursa Malaysia closed lower at midday as investors chose to take profit amid an uncertain outlook.
US President-elect Donald Trump's expected tariffs and a US rate cut pause have caused investors to take cover.
At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 5.55 points, or 0.34 per cent, to 1,609.28 compared with Wednesday's close of 1,614.83.
The index had opened 3.34 points firmer at 1,618.17 and traded between 1,605.39 and 1,618.17 during the morning session.
On the broader market, decliners outnumbered gainers 716 to 232, with 469 counters unchanged, 953 untraded and 10 suspended.
Turnover totalled 1.97 billion units worth RM1.46 billion.
Maybank Investment Bank Bhd (MaybankIB) said the FBM KLCI continued its downtrend after US jobs data indicated a cooling labor market, suggesting the Fed might pause rate cuts in January.
The firm said market sentiment remained weak, with most constituents trading in the red.
"The construction sector declined due to profit-taking, and tech stocks slipped, likely due to reports of new US export restrictions on AI chips targeting China and Russia.
"On the bright side, REIT share price gains prompt selective picking, seeing opportunities in targeted market segments," it said in a note.
Among the heavyweights, Kuala Lumpur Kepong Bhd lost six sen to RM21.34, IOI Corporation Bhs fell one sen to RM3.85, while QL Resources Bhd was flat at RM4.61.
Of the active stocks, Velocity Capital Partner Bhd slid half-a-sen to 7.5 sen, and MYEG Services Bhd was 1.5 sen weaker at 94.5 sen, while Swift Energy Technology Bhd and Sarawak Cable Bhd rose two sen to 41.5 sen and 14 sen respectively.