KUALA LUMPUR: An extended rebound on Bursa Malaysia was capped on Thursday as investors priced down equities amid a more hawkish outlook on the global interest rate environment.
The benchmark FBM KLCI ended a four-day losing streak yesterday, supported by purchases from local institutions, but it was a brief reprieve from the mounting selling pressure as the outflow of foreign funds continued on Thursday.
At the opening bell, the blue-chip index lost 0.58 points to 1,539.84
The local market is expected to track sentiment in US markets, where the ongoing decline is reflective of the increasing risk-off environment as the first interest rate cut by the Federal Reserve is now likely pushed back to September. Overnight, the S&P 500 extended its losing streak for a fourth consecutive day by 0.58% to 5,022.21 while the technology-heavy Nasdaq dropped 1.15% to 15,683.37. The Dow Jones declined 0.12% to 37,753.31.
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