KUALA LUMPUR: The FBM KLCI continued to shed weight after the previous week's decline as investors awaited the release of corporate earnings, which is expected to pick up speed over the coming two weeks.
Apex Securities said that with the GDP and recent marker gains out of the way, the next phase of the market is likely to be increasingly earnings driven rather than purely macro-driven.
On the external front, the research firm said global equity markets remain supported by strong corporate earnings, moderating inflation and expectations that major central banks are approaching the end of their tightening cycles.
"In the near term, the key factors to monitor will be US monetary policy, consumer spending, global inflation, corporate earnings, oil prices and geopolitical developments.
"Overall, the global equity environment remains constructive, but the balance of risks suggests a more selective approach may be appropriate after the strong gains recorded across several major markets," it said.
At 9.07am, Malaysia's benchmark index was down 4.01 points to 1,723.38, returning to its lowest level since the start of the month.
Weakness in bank shares ahead of their quarterlly results announcements continued to weigh on the index, with Maybank falling four sen to RM10.56, CIMB dropping nine sen to RM7.86, Public Bank shedding two sen to RM5.11, RHB sliding five sen to RM8.60 and Ambank losing four sen to RM7.31.
Brent crude futures for October delivery had hovered naer US$88 a barrel, as traders awaited new developments amid stalled peace talks between the US and Iran. Among the PETRONAS-related counters, PETRONAS Chemicals rose five sen to RM4.55, MISC added eight sne to RM8.18 while PETRONAS Gas dropped 12 sen to RM17.30.
Leading the actives on the market, JAKS Resources rose 1.5 sen to 12 sen, Oppstar gained 1.5 sen to 75 sen to YGL gained two sen to 15 sen.