Kuala Lumpur:Bursa Malaysia saw a significant drop in its index on Tuesday, impacted by the pressure from increasing bond yields and rising oil prices, which have affected investors' risk appetite.
According to BERNAMA News Agency, the FTSE Bursa Malaysia KLCI (FBM KLCI) decreased by 26.06 points, or 1.56 percent, closing at 1,643.96, compared to the previous day's close of 1,670.02. The index opened lower at 1,664.11 and fluctuated between 1,643.36 and 1,665.32 during the trading session.
Market sentiment was negative, with 688 decliners surpassing 412 gainers, while 548 counters remained unchanged. There were 1,243 untraded and 143 suspended counters. The turnover increased to 3.31 billion units worth RM2.95 billion, up from 3.11 billion units valued at RM2.40 billion on Monday.
Rakuten Trade Sdn Bhd's vice-president of equity research, Thong Pak Leng, noted that Brent crude oil prices rose to around US$107 per barrel, contributing to inflationary concerns. Technology stocks faced pressure due to uncertainties about the pace of artificial intelligence development. Thong added that the market is expected to remain cautious and volatile until clearer signs of stabilization appear.
Banking stocks led the decline among heavyweights, with Maybank dropping 17 sen to RM9.99, Public Bank losing seven sen to RM4.72, CIMB decreasing 21 sen to RM7.78, RHB Bank weakening 30 sen to RM7.54, and AMMB shedding 16 sen to RM6.44. Other heavyweight stocks also experienced losses, including Tenaga Nasional and IHH Healthcare.
In other trades, Zetrix AI saw a drop of 2.5 sen to 16.5 sen, while Jaks Resources gained half a sen to 19 sen. Among top gainers, Allianz Malaysia rose 50 sen, and Solarvest increased by 33 sen.
The FBM Mid 70 Index, the FBM Emas Index, and the FBM Top 100 Index all experienced declines. Sector-wise, the Financial Services Index fell significantly, while the Energy Index saw a gain. The Main Market volume showed an increase, while the ACE Market volume declined.
Consumer products and services, industrial products and services, and technology counters were among the most traded sectors on the Main Market.