Stocks on the Bursa Malaysia traded on a steadier footing Thursday. Market breadth was positive throughout the trading day as investors bargain hunted for stocks that have fallen over the last few days.

Nevertheless, the key benchmark index, the FBM KLCI was in red for the better part of the day, despite opening in positive territory. The index closed one point lower at 1,264.5, having already lost almost 43 points in the last four days.

This suggests that investors, by and large, remain cautious on the outlook for the stock market in the near to medium term.

Indications from Bank Negara that the country’s benchmark overnight policy rate would be raised sooner rather than later as well as expectations of higher prices, including for petrol and electricity, in the next few months would probably keep investors on their toes. Inflation could damp consumer purchasing power and spending.

Investors will also continue to look to the US and regional markets for direction. On Thursday, Asian markets snapped their losing streak to trade broadly higher. Bellwether indices in key markets recovered some lost ground after Wall Street ended higher overnight.

Sentiment was aided by the US Federal Reserve’s assurances that it will keep interest rates near zero and that the economic recovery is intact. Investor confidence also got a boost from President Obama’s pledge to tackle record high unemployment rate in the country. The weak jobs market has weighed on consumer spending, which accounts for two-thirds of the US economy.

On the local bourse, there were more than eight gaining stocks for every three decliners at the close. KYM, PPB, 3A, AE Multi and MRCB were among the notable gainers for the day. At the other end, MISC, IOI Corp and Sime Darby were some of the bigger losers. More than 935 million shares were traded. MEMS Technology was the most actively traded counter.