KUALA LUMPUR, June 13 ― Bursa Malaysia remained lower at lunch break as investors awaited the release of the US consumer price index (CPI) data later in the day that could be the deciding factor in the US Federal Reserve’s (Fed) monetary policy decision.

At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 6.60 points, or 0.48 per cent, to 1,380.17 from 1,386.77 at yesterday’s close.

The key index opened 0.92 of-a-point firmer at 1,387.69 this morning.

The broader market was negative as decliners outpaced gainers 392 to 338, while 411 counters were unchanged, 1,103 untraded and 12 others suspended.

Turnover stood at 1.65 billion units worth RM865.70 million.

Malacca Securities Sdn Bhd expects the investors to look out for the US CPI data as well as the US Federal Open Market Committee (FOMC) meeting on June 13-14.

"With the consensus expecting a decline in CPI, the Fed may keep the interest rate unchanged at 5.00-5.25 per cent for now, and there should be upside potential for the stock markets.

"However, the FBM KLCI’s upside could be capped by the sentiment surrounding the upcoming elections in six states,” it said.

Commodities-wise, the Brent crude oil price tumbled towards US$72 per barrel, while the crude palm oil price hovered just below RM3,350 a tonne.

Meanwhile, Hong Leong Investment Bank expects the FBM KLCI’s undemanding valuation at 2023’s 13.3 times price-to-earnings ratio along with a grossly oversold position and all-time low foreign shareholding (end-May: 20.0 per cent), should contribute to a relief rebound in the near term.

The investment bank said, however, the market’s sustainability is questionable as it foresees resistance at 1,390, 1,400, and 1,410, and resistance at 1,343 followed by 1,354 due to lingering concerns on key central banks’ policy decisions this week.

The other factors include the continued ringgit weakness and persistent foreign outflows and China’s slowing economic growth as the republic is Malaysia’s largest trading partner.

Of the heavyweights, Maybank lost one sen to RM8.62, Public Bank narrowed four sen to RM3.81, CIMB went down seven sen to RM4.95, Tenaga Nasional fell five sen to RM9.21, and Petronas Chemicals was 19 sen lower to RM6.46.

Of the active counters, Sarawak Consolidated added three sen to 35.5 sen, Bumi Armada ticked up two sen to 44 sen, and Kumpulan Jetson gave up nine sen to 33.5 sen, while Classita and Komarkcorp were flat at 10.5 sen and 8.5 sen respectively.

On the index board, the FBM Emas Index fell 28.73 points to 10,188.39, the FBMT 100 Index decreased 29.89 points to 9,884.65, the FBM Emas Shariah Index slid 21.60 points to 10,531.01, the FBM ACE Index rose 42.87 points to 5,119.50, and FBM 70 Index put on 31.00 points to 13,506.07.

Sector-wise, the Plantation Index dropped 22.33 points to 6,735.31, the Energy Index increased 3.05 points to 780.92, the Financial Services Index dipped 29.83 points to 15,189.59, and the Industrial Products and Services Index eased 1.25 points to 158.56. ― Bernama