Bursa Malaysia opened higher, tracking cautious global sentiment after US equities retreated overnight following renewed concerns over a potential interest rate hike by the Federal Reserve.
At 9.28am, the FBM KLCI rose 7.88 points or 0.46% to 1,717.87, after opening at 1,722.35. The index traded between 1,717.87 and 1,722.63 in early session.
Broader market performance was mixed, with the FBMT100 up 0.35% and FBMEMAS gaining 0.34%, while the FBM Small Cap index slipped 0.04%. The FBM70 was largely flat, edging up 0.03%.
Sector performance showed a divided picture. Construction rose 0.33% and consumer products and services gained 0.55%, while energy slipped 0.30%. Smaller cap-related indices also remained slightly weaker.
Market breadth was supported by selective buying in heavyweight counters, with consumer and defensive names leading early gains.
Among actively traded stocks, Hong Seng slipped to 0.01, down 0.005, while SUM Technology continued to draw strong interest, trading at 0.430, up 0.150 with heavy volume. Tanco rose 0.025 to 0.175, while Zetrix edged lower.
Top gainers included Hong Leong Industries, Allianz and Dutch Lady, while losses were led by MPI, Nestlé and Paragon, which saw sharper declines in early trade.
The local market’s cautious tone comes after Wall Street closed lower overnight, as investors reassessed the US Federal Reserve’s policy outlook following signals that interest rates could rise later this year.
The sell-off in US equities was broad-based, with all major indices finishing in the red after Fed chair Kevin Warsh reiterated the central bank’s focus on price stability and updated projections showed that several policymakers now expect at least one rate hike before the end of 2026.
Regional sentiment also remains sensitive to developments in global energy prices and geopolitical tensions, with investors weighing the impact of a fragile US-Iran ceasefire agreement alongside shifting expectations for monetary policy.
