Bursa Malaysia’s benchmark index fell broadly, influenced by declines in construction and banking sectors amidst geopolitical tensions. The FTSE Bursa Malaysia KLCI closed at 1,517.66, marking a drop of 10.15 points. Turnover decreased, and regional indices presented mixed outcomes as investors await significant economic discussions, including the FOMC meeting.
Bursa Malaysia concluded with a notable decline, largely attributed to lack of buying catalysts, particularly in the construction and banking sectors. Thong Pak Leng, Vice-President of Equity Research at Rakuten Trade Sdn Bhd, emphasized that the FTSE Bursa Malaysia KLCI (FBM KLCI) ended lower amid mixed performances in regional indices influenced by rising geopolitical tensions in the Middle East.
At the close of trading, the FBM KLCI decreased by 10.15 points, or 0.66 percent, to 1,517.66, having opened 14.52 points down. Throughout the day, it bounced between lows of 1,512.21 and highs of 1,523.39. In the broader market, decliners outnumbered gainers, recording 449 losers to 428 gainers, with 481 stocks unchanged, 1,078 untraded, and seven suspended.
Trading volume fell to 2.92 billion units worth RM2.73 billion, showing a decrease from the previous day’s 3.28 billion units valued at RM2.40 billion. The exchange had been closed for the Nuzul Al-Quran public holiday the day before, impacting trading activity.
Analyst Thong also noted the market’s awareness of potential tariff escalations led by Donald Trump’s reiteration of reciprocal trade threats, alongside ongoing US-mediated discussions for a peace agreement between Russia and Ukraine. With the benchmark struggling to maintain the 1,520 level, the next crucial support is anticipated at 1,500.
Mohd Sedek Jantan, Head of Investment Research at UOB Kay Hian Wealth Advisors Sdn Bhd, remarked on the cautious sentiment prevailing from Wall Street’s recent decline, which correlated with the upcoming Federal Open Market Committee (FOMC) meeting. He acknowledged signs of stabilisation in market sentiment compared to last week despite the overarching risk-off sentiment.
The global developments affecting markets included Indonesia’s stock market vulnerability due to significant revenue drops, raising fiscal concerns which also affected Malaysian stocks linked to Indonesia. Meanwhile, the Bank of Japan maintained its benchmark interest rate unchanged.
Key heavyweights including Maybank and CIMB witnessed declines, with the latter down 32 sen to RM6.93. Conversely, IHH Healthcare edged up by one sen to RM7.10. The trading showcased variances: FBM Emas Index fell 60.42 points, whereas the FBM ACE Index gained 20.34 points.
Sector-wise, the Financial Services Index suffered the most losses, while the Energy and Plantation indices experienced gains. The trading landscape reflected diverse engagement with notable transaction volumes across consumer products, industrial, and energy stocks on the Main Market.
Overall, the decrease in Bursa Malaysia underscores ongoing market uncertainties, particularly influenced by external geopolitical and economic factors, alongside investor sentiment awaiting the outcomes of significant economic discussions ahead.
In summary, Bursa Malaysia faced a downturn influenced by insufficient buying interests across key sectors, particularly construction and banking. Regional tensions, tariff discussions, and economic strategies contributed to mixed market sentiments. Analyst perspectives highlight cautious optimism amidst declining indexes and anticipated support levels. Overall, the market appears positioned for cautious trading amid external economic pressures.
Original Source: www.thestar.com.my
