Kuala lumpur: Bursa Malaysia's benchmark index reversed earlier gains to end lower, influenced by losses in the telecommunications and banking sectors, despite a broadly positive performance across Asian markets.
According to BERNAMA News Agency, Rakuten Trade Sdn Bhd's vice-president of equity research, Thong Pak Leng, noted that the local market remains under pressure due to ongoing concerns over geopolitical tensions, elevated oil prices, and uncertainty surrounding the global interest rate outlook.
At the close of trading, the FTSE Bursa Malaysia KLCI (FBM KLCI) recorded a decline of 10.33 points, or 0.61 percent, settling at an intraday low of 1,672.74 compared with Friday's finish at 1,683.07. The local bourse resumed activities after being closed for public holidays on Monday and Tuesday. The benchmark index had opened 4.06 points higher at 1,687.13 and reached an intraday high of 1,693.09 during the morning session before losing momentum.
Market breadth was negative, with 702 decliners surpassing 517 advancers, while 535 counters remained unchanged. Meanwhile, 849 counters were untraded, and 13 were suspended. Turnover fell to 3.85 billion units valued at RM4.69 billion from 4.94 billion units valued at RM10.74 billion on Friday. Thong mentioned that the FBM KLCI erased earlier gains and closed lower as investors remained cautious, avoiding aggressive buying. He emphasized that recent market pullbacks have moved the market closer to an oversold position, which could spark bargain-hunting interest, especially in fundamentally strong blue-chip stocks.
IPPFA Sdn Bhd's director of investment strategy and country economist, Mohd Sedek Jantan, highlighted that robust US labor market data and resilient inflation readings have bolstered expectations that the US Federal Reserve may keep interest rates unchanged for an extended period. He added that the weakness in local banking stocks was likely due to sector rotation and profit-taking rather than a direct reaction to US economic data.
Among the heavyweights, Maybank lost 22 sen to RM10.42, Tenaga Nasional dropped 20 sen to RM14.08, CIMB slipped 28 sen to RM7.20, and IHH trimmed 25 sen to RM8.76. Public Bank increased by three sen to RM4.74. Active stocks included ACE Market debutant Bus Cap, which gained 8.5 sen to 31.5 sen, while Zetrix, VS Industry, and Top Glove saw modest gains. Nationgate was four sen lower at 84 sen.
Top gainers were led by Nestle, which garnered RM2.52 to RM93.52, and Petronas Dagangan, which jumped 86 sen to RM18.60. Meanwhile, United Plantations, Kuala Lumpur Kepong, and Fraser and Neave were among the top losers. The index board saw the FBM Emas Index, FBM Top 100 Index, and FBM Emas Shariah Index all experiencing declines.
The Main Market volume decreased to 2.20 billion units valued at RM4.34 billion, while the warrants turnover expanded. The ACE Market volume also saw an increase. Various sectors, including consumer products and services, industrial products and services, construction, and technology, accounted for significant trading volumes on the Main Market, reflecting a selective trading environment.