KUALA LUMPUR (Oct 15): Malaysia shares fell on Thursday with the benchmark index at the verge of snapping a four-day winning streak amid renewed concerns over rising US interest rates.

The FBM KLCI paused for midday trading break down 5.6 points or 0.3% to 1,622.12 points. YTL Power International Bhd (KL:YTLPOWR) was the biggest loser among 30 index constituents, shedding 3% to RM5.31.

The index was showing signs of losing momentum, as US inflation data reignited worries of rising interest rates and expensive artificial intelligence (AI) stock valuations weighed on investor sentiment, Hong Leong Investment Bank said in its morning trading note.

All sectoral indices were in the red, except real estate investment trusts.

Technology stocks fell sharply with heavyweights ViTrox Corporation Bhd (KL:VITROX) down 3% to RM10.32 amid the extended sell-off in global semiconductor stocks, partly dragged by worries of overspending on AI.

There are also concerns over rising financing costs, intensifying Chinese competition and whether heavy spending on AI would generate sufficient returns.

Foreign institutions extended their net selling streak to 16 consecutive sessions on Wednesday, disposing of RM84 million worth of Malaysian equities. Year to date, net selling totalled nearly RM7 billion.

Investors would also be watching upcoming US producer price and retail sales data for further clues on inflationary pressures and consumer spending, Berjaya Research said in its Thursday market bulletin.