Subdued trading on Bursa continues as traders await Fed rate decision

KUALA LUMPUR: Sentiment on the local stock market remains weak after two straight losing sessions as the final month of 2025 has provided few domestic trading catalysts.

Neverthess, anticipation over a Federal Reserve rate cut next week could help to shore up the fragile market, said TA Securities in its market outlook.

With a recent US labour report reviving hopes of a reduced interest rate, CME FedWatch has pegged an 87% probability of a 25 basis points rate cut at the coming Federal Opem Market Committee meeting. 

Malacca Securities noted its review that year-end window-dressing activities are expected to support the overall sentiment on the local bourse.

The research firm said the technical indicators are showing a buy signal with the MACD histogram hovering in positive territory while the RSI is trading above 50 points. "Resistance is anticipated around 1,636–1,641, while support is located at 1,596–1,601," it said.

Meanwhile, Rakuten Trade is bullish over the ringgit's growing strength against the US dollar. "We believe the improving ringgit currently at 4.11 against the US dollar should act as a catalyst for foreign fund inflows going forward," it said in a note.

At the open, the FBM KLCI was down 0.37 points to 1,620.7, signalling continued downward pressure.

Telcos were leading the decline with Axiata falling nine sen to RM2.59 and Maxis shedding six sen to RM3.80.

MISC fell seven sen to RM7.45 while Maybank lost another four sen to RM10.20 on profit-taking.

Among consumer stocks, Spritzer dropped six sen to RM2.79, Dutch Lady shed 20 sen to RM31.90, Heineken fell 18 sen to RM22.44 and Carlsberg slipped 12 sen to RM16.78.

Of actives, VS Industry rose two sen to 48 sen, Velesto was unchanged at 24.5 sen and TWL was flat at 2.5 sen.