KUALA LUMPUR, Sept 22 — Bursa Malaysia opened lower today, extending yesterday's loss as Wall Street tumbled overnight after the United States (US) Federal Reserve (Fed) raised interest rates and signalled more aggressive hikes to come, dealers said.

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 5.92 points to 1,441.26 from Wednesday's close of 1,447.18.

The benchmark index opened 2.31 points lower at 1,444.87.

On the broader market, decliners outpaced gainers 232 to 43, while 165 counters were unchanged, 1,950 untraded, and nine others suspended.

Turnover stood at 98.13 million units worth RM43.28 million

Malacca Securities Sdn Bhd said global sentiment should remain cautious at least over the near term, as investors digested the 75-basis point interest rate hikes and the Fed’s signal of more aggressive hikes going forward.

"Nevertheless, bargain hunting activities may emerge in selected sectors as traders may shift their focus to Budget 2023 beneficiaries," it said in a note.

The brokerage firm noted that the Brent crude oil price has fallen below the US$90 per barrel mark, while crude palm oil (CPO) hovered above RM3,800.

"While overall sentiment could remain negative, investors may buy on dips in the banking sector amid the interest rate upcycle environment.

"The market may also favour the renewable energy, construction and building materials segments prior to the tabling of Budget 2023. We also like export-oriented segments such as the packaging industry," it added.

Among the heavyweights, Maybank slipped five sen to RM8.67, while CIMB Bank, Petronas Chemicals, and IHH Healthcare declined five sen each to RM8.56 and RM5.40, and RM6.05, respectively.

Public Bank added one sen to RM4.41.

Of the actives, Velesto and Sunzen warrant edged up half-a-sen to 13 sen and 6.5 sen respectively, Top Glove slid one sen to 65.5 sen, EA Technique eased half-a-sen to 8.5 sen while Cnergenze was flat at 95.5 sen.

On the index board, the FBM Emas Index went down 38.05 points to 10,292.05, the FBMT 100 Index lost 41.55 points to 10,029.08, the FBM Emas Shariah Index decreased 42.54 points to 10,347.35, the FBM 70 shed 53.20 points to 12,479.35 and the FBM ACE gave up 24.78 points to 4,753.34.

Sector-wise, the Energy Index was 5.40 points easier at 720.18, the Plantation Index contracted 25.53 points to 6,820.29, the Financial Services Index fell 45.48 points to 16,354.37 and the Industrial Products and Services Index trimmed 1.09 points to 174.59. — Bernama