KUALA LUMPUR, July 29 — Bursa Malaysia closed marginally lower on Tuesday as investors adopted a cautious stance ahead of the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) policy decision, with persistent weakness in technology stocks weighing on overall market sentiment.
The FBM KLCI slipped 0.04% to 1,712.48, while market breadth turned negative as 706 counters declined against 359 gainers. Gains in the REIT, Telecommunications & Media and Utilities sectors were offset by losses in Technology, Energy and Industrial Products & Services.
Overnight, U.S. markets ended mixed. The Dow Jones Industrial Average advanced on stronger-than-expected corporate earnings and lower crude oil prices, while the Nasdaq Composite edged lower as semiconductor stocks remained under pressure. Shares of Micron and AMD fell more than 8%, dragging the broader technology sector. Brent crude also extended its decline, falling 3.78% to US$84.49 a barrel.
FOMC jitters
Market participants are now focused on the Fed’s policy announcement due on Thursday (Malaysian time). While economists broadly expect interest rates to remain unchanged at 3.50% to 3.75%, investors will closely scrutinise the central bank’s statement for signals on the future direction of monetary policy amid persistent inflation concerns.
Sentiment was also tempered by softer U.S. consumer confidence data, with the July reading falling to 90.8, below market expectations. Meanwhile, reports of possible progress in U.S.-Iran diplomatic negotiations have raised hopes of improved oil supply, contributing to the recent decline in crude prices.
Analysts expect the FBM KLCI to remain range-bound in the near term as investors await key macroeconomic developments and corporate earnings. Defensive sectors may continue to attract interest, while technology and energy counters could remain under pressure. Technically, immediate resistance is seen between 1,720 and 1,740, with the 1,700 level serving as the index’s key support.
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