Overnight declines in US equities following reports showing inflation picking up again may halt the recovery in Malaysian stocks on Wednesday.
At the open, the benchmark FBM KLCI fell 1.13 points to 1,628.92, keeping the index in a consolidation trading channel.
There was sharp profit-taking in tech counters on Wall Street that led to a 1.89% drop in the Nasdaq and 10-year Treasury yields jumping higher.
The resilience of the economy shown in the higher-than-expected US November jobs report has observers assessing the possibility that the Federal Reserve may shelve plans for further interest rate cuts.
According to Rakuten Trade, the benchmark index is showing signs of recovery supported by a positive exponential moving average crossover and strong support from local institutions.
They believe the bullish momentum will help the index regain its strength.
The FBM KLCI is expected to trade in a range of 1,625 to 1,635 today.
Making its debut on Bursa Malaysia's ACE Market today, industrial services firm Swift Energy Technology opened eight sen higher at 36 sen per share representing a 28.57% increase compared to its initial public offering (IPO) price of 28 sen per share.
