Bursa Malaysia’s index ended lower due to selling in construction and banking sectors, with some support from healthcare stocks. Investor sentiment was influenced by geopolitical tensions. The FBM KLCI closed at 1,517.66, down 10.15 points. The market remains cautious ahead of the FOMC meeting, with mixed regional performances noted.
Bursa Malaysia’s benchmark index declined, largely due to selling pressure in the construction and banking sectors, while healthcare stocks experienced some buying activity. According to Thong Pak Leng, Vice-President of Equity Research at Rakuten Trade Sdn Bhd, the FTSE Bursa Malaysia KLCI (FBM KLCI) closed lower due to insufficient buying catalysts. Regional indices exhibited mixed performance, influenced by rising geopolitical tensions in the Middle East.
As of 5 PM, the FBM KLCI decreased by 10.15 points, or 0.66 percent, settling at 1,517.66, down from the previous day’s close of 1,527.81. The index opened weaker at 1,513.29, fluctuating between 1,512.21 and 1,523.39 throughout the session. On the broader market, decliners outnumbered gainers, standing at 449 compared to 428, with many counters remaining unchanged or untraded.
Turnover fell to 2.92 billion units valued at RM2.73 billion, declining from Monday’s 3.28 billion units worth RM2.40 billion. Bursa Malaysia and its subsidiaries were closed for the Nuzul Al-Quran public holiday. Thong mentioned that the market remained vigilant regarding potential escalations in tariffs, as former President Donald Trump reiterated threats of reciprocal measures in light of ongoing discussions for a U.S.-mediated peace agreement concerning Russia and Ukraine.
The benchmark index failed to hold above the 1,520 mark, with expectations of the next support level at 1,500. Thong stated, “As the market pulls back, many fundamentally strong stocks are trading at discounted prices, encouraging bargain hunting by value investors,” projecting that the FBM KLCI would reside between 1,500 and 1,530 for the week.
Mohd Sedek Jantan, Head of Investment Research at UOB Kay Hian Wealth Advisors Sdn Bhd, observed a cautious decline in Wall Street due to investor apprehension ahead of the Federal Open Market Committee (FOMC) meeting. Nevertheless, he noted some signs of stabilisation in market sentiment compared to the previous week, with some commodities and utilities stocks performing well.
Beyond general risk-averse sentiments prior to the FOMC meeting, market movements were further influenced by a decline in Indonesian equities and a slip in the rupiah against the U.S. dollar. Concerns arose from Indonesia’s nearly 30 percent drop in government revenues, which potentially affects fiscal strategy and economic growth, subsequently impacting Malaysian stocks exposed to the country.
Alongside the Federal Reserve’s anticipated decision to maintain interest rates, Mohd Sedek stated that focus would be on the dot plot, which offers insight into future policy directions. In stock performance, Maybank decreased by six sen to RM10.36, while CIMB fell by 32 sen to RM6.93. Conversely, IHH Healthcare rose by one sen to RM7.10.
On the index board, the FBM Emas Index declined by 60.42 points to 11,364.06. The FBMT 100 Index decreased by 66.10 points to 11,121.69, while the FBM Emas Shariah Index lost 25.21 points, closing at 11,058.79. In sector performance, the Financial Services Index dropped by 183.70 points, while the Plantation Index gained 21.12 points.
Main Market volume slightly increased to 1.48 billion units worth RM2.46 billion, and warrant turnover decreased to 1.11 billion units valued at RM165.83 million. The ACE Market volume diminished to 318.77 million units valued at RM101.24 million. Consumer products and services counters led trading volume on the Main Market, with a total of 267.55 million shares traded. Other notable trading volumes included industrial and construction sectors.
In summary, Bursa Malaysia experienced a notable decline, attributed primarily to selling in construction and banking sectors, alongside geopolitical tensions influencing investor sentiment. While healthcare stocks attracted some buyers, overall market activity remained subdued, leading to a drop in the benchmark index. Analysts predict a continued cautious market, with potential bargain hunting as investors look for fundamentally strong stocks amid the overall market pullback.
Original Source: www.thestar.com.my
