KUALA LUMPUR: The mounting headwinds on the domestic and international front foiled further recovery in Malaysia stocks, which descended in line with renewed pressure on global equities.
At 9.05am, the FBM KLCI was down 1.52 points to 1,424.27, tracking the negative performance on Wall Street overnight.
US investors are experiencing fresh jitters over the release of inflation data on Wednesday as well as the release of big company earnings this week, which could show soaring inflation has had downward pressure on earnings.
"Recall that global equities suffered a major jolt about one month ago when the US May CPI showed a sharp annual increase of 8.6% for the 12-month rolling period.
"Should the June report surprise on the upside again it may then fuel expectations for faster-than-anticipated interest rate hikes in the run-up to the US Federal Reserve monetary policy meeting later this month," said Kenanga Research in a report.,
Meanwhile, Malaysia is facing a resurgence in Covid cases as the highly contagious BA. 5 strain of the virus begins to take hold in the region.
On the blue-chip index, Press Metal fell 10 sen to RM4.18, MISC shed five sen to RM6.74 and and CIMB dropped three sen to RM5.11.
Technology counters were also on the backfoot as the Nasdaq led the declines on Wall Street overnight.
MPI lost 24 sen to RM27.95 and Pentamaster slipped 10 sen to RM3.57.
Meanwhile, top actives were Metronic up 4.5 sen to 14 sen, Top Glove adding one sen to RM1 and ARB losing 0.5 sen to 10.5 sen.