FBM KLCI falls at midday as interest rate concerns weigh
Foreign institutions extended their selling run to 16 consecutive sessions, with year-to-date net outflows reaching nearly RM7 billion.
Malaysian equities retreated on Oct 15, putting a four-day market recovery at risk. At the midday break, the FBM KLCI stood at 1,622.12 points, having lost 5.6 points or 0.3%.
Hong Leong Investment Bank said US inflation figures had revived concerns about higher interest rates, while elevated valuations of artificial intelligence (AI) stocks were hurting sentiment. Its morning trading note pointed to weakening momentum in the benchmark.
YTL Power International Bhd led declines among the index’s 30 constituents, falling 3% to RM5.31. Real estate investment trusts were the sole exception to losses across sectoral indices.
Technology shares also weakened as the global semiconductor sell-off continued, partly reflecting concerns about excessive AI spending. ViTrox Corporation Bhd dropped 3% to RM10.32.
Foreign institutions registered net selling for 16 consecutive sessions, disposing of Malaysian equities worth RM84 million in the latest session. Their net sales for the year reached nearly RM7 billion.
Berjaya Research said investors would monitor forthcoming US producer price and retail sales figures for indications of inflation pressures and consumer spending.
