Malaysian stocks continued their downward trend on Wednesday as investors await the publication of the latest US inflation data.

The benchmark FTSE Bursa Malaysia KLCI, the main gauge of Malaysian stocks, shed 14.34 points to end 0.91% lower at 1,562.12. The day range was between 11,558.60 and 1,586.21.

Market sentiment was subdued as investors awaited the release of the latest US consumer inflation data. This crucial economic indicator will significantly influence the Federal Reserve's monetary policy decisions, particularly the pace of interest rate cuts.

Economists polled by Reuters expect consumer prices to have risen 0.3% in December, matching November's reading. The US will publish its consumer price data later on Wednesday.

On Tuesday, the Labor Department published the latest US producer price data, which showed the index rising 0.2% in December.

In corporate news, Oriental Kopi Holdings said its initial public offering was oversubscribed. The food and beverage chain operator received 66,041 applications for 3.66 billion shares worth 1.6 billion ringgit from the Malaysian public, marking an oversubscription rate of 59.96 times.

Shares of ES Ceramics Technology (KLSE:ESCERAM) gained over 3% after its unit Focus Maxwell will be wound up after a member's meeting. Focus Maxwell was incorporated in 2019, a dormant company which was principally engaged in investment holding.

Shares of AYS Ventures (KLSE:AYS) dropped about 2% after Chiew Ho (L) Foundation acquired a substantial shareholding in the company, after it acquired Chiew Ho Holding. Chiew Ho Holding holds 239.7 million shares in AYS Ventures, representing 57.27% of the company's issued shares.

Shares of Theta Edge (KLSE:THETA) also dropped about 2% after its unit Theta Innovation and iStream360 mutually decided to terminate a joint venture and shareholders' agreement. The parties had signed a joint venture deal to explore and identify future projects about artificial intelligence (AI), blockchain and advance system development.