KUALA LUMPUR: Bursa Malaysia opened marginally lower before inching into positive territory on Thursday, after the US Federal Reserve (Fed) maintained its key interest rates.

At 9.30am, FTSE Bursa Malaysia KLCI was up 0.04 per cent or 0.69 points to 1,576.66 versus Tuesday's close of 1,575.97.

The key index opened one point easier at 1,574.97.

The broader market saw decliners led gainers 362 to 195 while 381 counters were unchanged.

The index board was a sea of red with FBM100 losing 0.09 per cent to 11,492.75, FBM Emas shed 0.09 per cent to 11,861.97 and FBM Ace dropped 0.05 per cent to 5,074.08.

Malacca Securities Sdn Bhd noted in a research report that despite market sentiment turning negative after the Fed's decision, which may cap the upside reward on the technology sector, the KL20 Summit 2024 should remain as a key catalyst on the sector.

"The summit is expected to cushion the sector and investors may accumulate selected technology stocks for long term," it said in a note.

The firm favours the construction, property, utilities, solar and building material segments, where the sectors are likely to be driven by the domestic catalysts like potential revival of mega infra projects and ongoing execution of the National Energy Transition Roadmap and New Industrial Master Plan 2030.

"Wall Street traded mixed and retreated from their intraday highs, respectively on the three major indices, despite the Fed keeping the interest rate unchanged as it notes "lack of further progress" on inflation. "Still, we believe the Fed will be data dependent and may only reduce the rates until the inflation is moving nearer to its inflation target of two per cent," it added. 

https://www.nst.com.my/business/corporate/2024/05/1045335/bursa-malaysia-opens-marginally-lower-after-us-federal-reserve