Prospect of more US rate hikes in 2023 dampen stock rally

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KUALA LUMPUR: There was some profit-taking on Bursa Malaysia in the morning session as the US Federal Reserve left the door open to more rate hikes later this year despite meeting expectations to skip an increase at the recent policy meeting.

At 12.30pm, the benchmark FBM KLCI was down 4.14 points to 1,381.28.

The market took on broad-based selling with 464 decliners compared to 268 gainers. Trading volume was 1.85 billion shares valued at RM847.98mil.

Following the Fed’s decision, global markets turned jittery as the unexpected signal for two more 25 basis points increases in 2023 shut out any chance of a rate cut during the year.

Asian markets were mixed with Japan’s Nikkei rising 0.75% to 33,721, South Korea’s Kospi dropping 0.4% and China’s composite index gaining 0.1% to 3,231.

Hong Kong’s Hang Seng meanwhile gained 0.8% to 19,569.

Blue chips on Bursa Malaysia retreated with Tenaga Nasional falling nine sen to RM9.11, PETRONAS Chemicals sliding seven sen to RM6.33 and Press Metal dropping five sen to RM4.68.

Hong Leong Bank shed 14 se nto RM18.62 although other banks held firm with CIMB gaining two sen to RM5.01 and Public bank adding three sen to RM3.85.

Tech-related counters were also on the losing end with MPI sliding 68 sen to RM28.42, KESM falling 17 sen to RM7 and Hextar Technologies dropping 12 sen to RM26.78.

APB Resources, which had extended its rally in early morning trade after hitting limit-up yesterday, succumbed to profit-taking pressure. At the lunch break, the stock had fallen 40 sen to RM2.52.

The company had come under intense investor interest after Press Metal founder and executive director Datuk Koon Poh Tat had emerged as a new substantial shareholder in the company.

Meanwhile, top actives stocks were SCIB up 2.5 sen to 41 sen, Classita dropping one sen to 9.5 sen and MYEG unchanged at 86 sen.

– The Star

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