Kuala Lumpur: Bursa Malaysia opened with a slight decline in early morning trade due to a lack of market-moving news, as traders awaited further clarity from the Trump administration regarding tariffs. At 9.15 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped by 1.59 points to 1,532.71 from the previous close of 1,534.30. The benchmark index had initially opened marginally higher by 0.94 of a point at 1,535.24.
According to BERNAMA News Agency, the broader market saw gainers slightly outnumbering decliners 171 to 146, with 257 counters remaining unchanged, 1,821 untraded, and 17 suspended. The turnover was recorded at 158.99 million units valued at RM85.26 million. Malacca Securities Sdn Bhd indicated in a note that the market might continue to experience weakness due to ongoing foreign fund outflows.
Malacca Securities Sdn Bhd also mentioned that rising geopolitical tension and uncertainty surrounding the Trump administration’s tariff stance could lead the market to adopt a defensive posture, potentially sustaining momentum in real estate investment trusts. Although Wall Street was closed on Monday for Memorial Day, US equity futures saw positive movement as investors reacted to President Trump’s extension of the tariff deadline on the European Union.
Additionally, Rakuten Trade Sdn Bhd’s equity research vice-president Thong Pak Leng noted concerns about a prolonged price war among electric vehicle players, which could lead to extended margin compression. Domestically, the FBM KLCI had closed slightly lower on Monday, with foreign selling expected to continue. Thong predicted that this foreign trading activity might prolong the consolidation of the benchmark index, anticipating the index to trend between the 1,535-1,545 range.
Among heavyweight stocks, Maybank decreased by four sen to RM9.88, Public Bank fell by three sen to RM4.38, Tenaga and IHH Healthcare both dropped by two sen each to RM13.98 and RM6.89 respectively, and CIMB slipped by one sen to RM6.95. Active stocks included NexG, which rose by one sen to 37.5 sen, MYEG, which increased by 1.5 sen to 91 sen, while OCR Group and Velesto remained flat at RM3.5 sen and 17 sen respectively, and Armada eased by one sen to 47.5 sen.
On the index board, the FBM Emas Index decreased by 5.55 points to 11,450.14, the FBMT 100 Index declined by 6.59 points to 11,212.12, and the FBM ACE Index dropped by 8.20 points to 4,589.87. Conversely, the FBM Emas Shariah Index gained 0.14 of a point to 11,390.13, and the FBM 70 Index rose by 10.58 points to 16,313.94. Sector-wise, the Financial Services Index increased by 23.92 points to 18,147.16, the Industrial Products and Services Index slightly decreased by 0.02 of a point to 153.72, the Energy Index dropped by 1.34 points to 704.57, and the Plantation Index edged up by 0.65 of a point to 7,336.02.