KUALA LUMPUR, June 15 — Bursa Malaysia stayed in the negative territory at lunch break as investors digested the United States (US) Federal Reserve's (Fed) rate hike respite, despite the recovery in regional markets.

The Fed left its benchmark rate at 5.25 per cent during the Federal Open Market Committee meeting last night, but hinted at more rate hikes by the end of this year, saying that the monetary tightening needs to be maintained due to persistent inflation.

At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 4.14 points or 0.30 per cent to 1,381.28 from 1,385.42 at yesterday’s close.

The key index opened 2.46 points lower at 1,382.96 this morning.

The broader market was negative as decliners outpaced gainers 464 to 268, while 418 counters were unchanged, 1,134 untraded and 13 others suspended.

Turnover stood at 1.85 billion units worth RM847.98 million.

Investors are also set to focus on European Central Bank where the consensus predicts another 25-basis point hike in its policy rate at the Governing Council meeting today.

ActivTrades trader Anderson Alves said macroeconomic indicators will continue to take centre stage in directing short-term price action in equity markets.

“Looking ahead, investors are eager for updates on potential stimulus measures for China's economy.

“Reports suggest the consideration of wide-ranging incentives, including property support and additional rate cuts. The State Council meeting on Friday will be closely watched as it may shed light on the proposed economic upliftment," he told Bernama.

Meanwhile, Malacca Securities Sdn Bhd said the local bourse may see selling pressure in interest rate-sensitive sectors such as the technology sector.

On commodities, it said Brent crude oil price saw a pullback towards US$73 per barrel, while the crude palm oil (CPO) price hovered above RM3,450 per tonne.

It said a gradual improvement in the CPO price may spur buying interest in the plantation sectors.

“Investors may focus on sectors such as consumer, tourism and REITs in view of more stimulus measures on the China front.

“On the other hand, the technology sector may see some pullback on the back of profit-taking activities," it added.

Of the heavyweights, Public Bank added three sen to RM3.85 and CIMB rose two sen to RM5.01, while Tenaga Nasional slid nine sen to RM9.11, Petronas Chemicals was seven sen lower to RM6.33, and Maybank was flat at RM8.60.

Among the active counters, Sarawak Consolidated edged up 2.5 sen to 41 sen, Dagang NeXchange improved 1.5 sen to 52 sen and KNM ticked up half-a-sen to eight sen, while Classita shed one sen to 9.5 sen, and MyEG was flat at 86 sen.

On the index board, the FBM Emas Index went down 32.61 points to 10,211.64, the FBMT 100 Index decreased 33.71 points to 9,905.45, the FBM Emas Shariah Index narrowed 55.77 points to 10,561.50, the FBM ACE Index fell 44.95 points to 5,154.05, and FBM 70 Index shrank 62.81 points to 13,587.49.

Sector-wise, the Plantation Index dropped 2.30 points to 6,704.81, the Energy Index erased 2.20 points to 785.23 and the Industrial Products and Services Index trimmed 0.91 of-a-point to 159.16.

However, the Financial Services Index was 14.57 points firmer to 15,198.71. — Bernama