KUALA LUMPUR: Bursa Malaysia lost its earlier positive momentum in the midday session, affected by declines in the plantation and financial services sectors.
As of 12:30 pm, the FTSE Bursa Malaysia KLCI had fallen by 0.10 per cent, or 1.61 points, to 1,676.58 from Monday's close of 1,678.19.
The broader market was negative, with 479 decliners outnumbering 429 gainers, and 494 stocks remaining unchanged.
Malacca Securities Sdn Bhd believes that the heavy selling of small caps observed in August may have been excessive, with expectations for a recovery in lower liners in September, while large-cap stocks might pause.
"Given the stronger ringgit performance over the past few months, sectors such as Consumer, Construction, Building Materials, and Property may benefit."We also favour stocks with strong fundamentals and growing earnings in their recent results," it said.
In the commodity markets, Brent oil prices rebounded following the suspension of oil exports at Libyan ports on Monday and a nationwide reduction in production.
Gold prices continue to hover around the US$2,500 mark, while crude palm oil (CPO) prices remain above RM3,900.