KUALA LUMPUR: Bursa Malaysia is expected to retrace its gains from last Friday as investors turn their attention to the outcome fo the US Federal Open Market Committee meeting that concludes on Wednesday.
At the start of the week's trading, Malaysia's benchmark FBM KLCI was down 3.55 points to 1,408.18 on the heels of Wall Street's negative performance in the previous session.
Kenanga Research noted that the Fed decision in reaction to the latest developments in the US banking sector will be in sharp focus over the coming days.
"Policymakers will have to find a tricky balance between combating inflation (by raising interest rates further) and preventing the spread of contagion effects following the recent spate of bank failures in the US (chiefly triggered by rising interest rates).
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