Kuala lumpur: Bursa Malaysia closed lower on Wednesday as investors engaged in profit-taking following a recent rally, with elevated crude oil prices and ongoing geopolitical tensions in West Asia keeping market sentiment cautious, according to an analyst. At the close of the trading day, the FTSE Bursa Malaysia KLCI (FBM KLCI) had fallen by nine points, or 0.52 percent, to 1,711.37 from the previous day's close of 1,720.37.
According to BERNAMA News Agency, the index opened slightly lower at 1,719.84 and fluctuated between 1,709.15 and 1,721.31 throughout the trading session. Decliners outnumbered advancers in the broader market, with 590 counters declining against 450 advancing, while 596 remained unchanged, 1,111 were untraded, and 23 were suspended. Turnover narrowed to 3.43 billion units valued at RM2.50 billion from the previous day's 3.48 billion units valued at RM2.79 billion.
Regional markets presented a mixed picture as sentiment remained fragile, influenced by high crude oil prices impacting risk appetite. The situation was compounded by Yemen's Iran-aligned Houthi rebels threatening to extend the conflict in West Asia. Brent crude oil prices climbed above US$94 per barrel after two tankers carrying Saudi crude reportedly reversed course in the Red Sea, highlighting the growing risk of disruptions to regional shipping routes, explained Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd.
On the domestic front, Thong remarked to Bernama that the recent market pullback represented a healthy consolidation following the FBM KLCI's strong advance from around 1,655 to 1,735. He noted that the sell-off might offer bargain-hunting opportunities in fundamentally sound large-cap stocks, as resilient domestic fundamentals and renewed foreign fund inflows continue to support the broader market recovery. However, he cautioned that geopolitical uncertainties and volatile oil prices are likely to keep trading sentiment cautious in the near term.
Thong anticipates the benchmark index to remain range-bound between 1,705 and 1,730 for the remainder of the week, with selective interest expected to focus on banking, energy, plantation, and other defensive sectors. Among heavyweight counters, Maybank fell by eight sen to RM10.94, Public Bank declined by five sen to RM5.15, Tenaga Nasional decreased by 28 sen to RM14.28, CIMB dropped by two sen to RM7.66, and IHH Healthcare dipped by 17 sen to RM8.33.
In the realm of active stocks, Aimax and Nextgram Holdings each edged up half a sen to 1.5 sen and 4.5 sen, respectively, while Aimflex rose three sen to 12 sen. Zetrix AI eased by 1.5 sen to 71.5 sen, and Tanco Holdings decreased by one sen to 30.5 sen. Among top gainers, Malaysian Pacific Industries surged by 92 sen to RM47.76, United Plantations added 30 sen to RM34.04, Petronas Gas increased by 28 sen to RM17.68, and Kesm Industries rose by 17 sen to RM4.25.
Nestle led the decliners, dropping RM1.60 to RM91.52, while Hong Leong Industries fell by 44 sen to RM18.00, Batu Kawan sank by 40 sen to RM20.90, and UMS Integration declined by 29 sen to RM7.90. The broader indices also saw declines, with the FBM Emas Shariah Index dropping 46.76 points to 12,497.69, the FBM Emas Index falling 53.80 points to 12,655.96, the FBM Top 100 Index shrinking by 58.87 points to 12,696.03, the FBM Mid 70 Index decreasing by 51.96 points to 17,956.81, and the FBM ACE Index inching down 5.84 points to 4,961.02.
By sector, the Financial Services Index declined by 93.02 points to 20,207.11, while the Plantation Index fell by 35.77 points to 9,321.24. The Industrial Products and Services Index, however, gained 1.12 points to 188.36, and the Energy Index increased by 4.01 points to 774.41. The Main Market volume improved to 1.94 billion units valued at RM2.22 billion, in contrast to 1.86 billion units valued at RM2.48 billion on Tuesday. Warrants turnover decreased to 970.20 million units worth RM130.98 million, compared to 1.11 billion units worth RM138.80 million previously. The ACE Market volume expanded to 520.43 million units valued at RM151.15 million from the previous day's 496.93 million units valued at RM171.87 million.
Consumer products and services accounted for 151.97 million shares traded on the Main Market, industrial products and services for 427.01 million, construction for 97.06 million, technology for 693.81 million, financial services for 70.93 million, property for 197.46 million, plantation for 30.53 million, real estate investment trusts for 13.16 million, closed-end fund for 8,400, energy for 118.43 million, healthcare for 55.90 million, telecommunications and media for 19.05 million, transportation and logistics for 28.92 million, utilities for 36.35 million, and business trusts for 9,600.