Bursa Malaysia slips as tech sell-off fears spill over

KUALA LUMPUR: Bursa Malaysia looked shaky at the start of Friday trading but kept mostly to a sideways channel as nerves overtook the global tech sector amid fears the much-anticipated US December rate cut will not materialise.

Wall Street shares were seen diving overnight as the odds of a quarter-percentage reduction in the Federal Funds Rate shrank after policymakers made hawkish comments on the economy. 

At present, there are nearly even odds in the year-end interest rate decision, with CME FedWatch indicating a 50.7% probability of a 25 basis points rate cut, and 49.3% of none.

On the domestic front, the quarterly gross domestic product (GDP) is scheduled for release at midday with expectations of 5.2% growth, higher than 4.4% recorded in the first half of the year.

At 9am, the downside pressure seen in global markets spilled over slightly into the local bourse, with the benchmark FBM KLCI slipping 1.46 points to 1,630.81.

The Bursa Malaysia Technology index was down nearly 1% to 61.05, tracking the Nasdaq's 2.2% decline.

VSTECS shed 11 sen to RM4.27 as investor took profit after yesterday's earnings-inspired rally.

Vitrox dropped nine sen to RM4.37 and Frontken fell seven sen to RM4.44.

Among actives, Pharmaniaga dipped 0.5 sen to 25.5 following the release of its quarterly results.

VS Industry slipped 0.5 sen to 50 sen and Insight Analytics gained one sen to RM1.02.