Kuala lumpur: Bursa Malaysia closed 0.34 per cent lower on Tuesday, marking its second consecutive day of decline, as the lack of buying support and absence of strong cues from key regional indices continued to weigh on sentiment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 5.19 points to 1,519.40 from the previous day’s close of 1,524.59. The benchmark index opened 1.70 points higher at 1,526.29 and fluctuated between 1,518.75 and 1,527.90 throughout the trading session.
According to BERNAMA News Agency, the market breadth was negative, with 591 losers overtaking 412 gainers and 472 counters unchanged, while 1,004 were untraded and seven suspended. Turnover decreased to 2.82 billion shares worth RM2.05 billion from Monday’s 3.5 billion shares worth RM2.68 billion. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI trended lower due to the lack of buying support as most key regional indices ended in negative territory amid cautious trading ahead of the Aug 1 deadline for potential US trade tariffs.
Thong Pak Leng remarked that investors are cautious due to various external factors and increasing regional market volatility, which affect global economic prospects. He noted that the short-term outlook remains uncertain, though bargain hunting may occur, predicting the FBM KLCI to trend range-bound within 1,510-1,540 for the rest of the week, with immediate support at 1,510 and resistance at 1,530.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan observed that Malaysia’s June Consumer Price Index, reported by the Department of Statistics Malaysia, showed a temporary reprieve as headline inflation moderated further to 1.1 per cent year-on-year from 1.2 per cent in May. This disinflationary trend provided a boost for consumer-oriented equities, particularly within retail trade and consumer discretionary segments, as market participants anticipated continued household consumption despite ongoing fiscal uncertainties.
Foreign institutional investors returned to net selling positions after a brief period of net buying, indicating sustained risk-off sentiment linked to external trade policy risks, particularly the impending deadline of Malaysia’s bilateral tariff negotiations with the United States. Regionally, market sentiment improved slightly in Hong Kong, where the Hang Seng Index gained for the third consecutive day, advancing 0.5 per cent to 25,130.03.
Elsewhere, Singapore’s Straits Times Index declined 0.24 per cent to 4,196.98, South Korea’s Kospi fell 1.27 per cent to 3,169.94, and Japan’s Nikkei 225 dropped 0.11 per cent to 39,774.92. On the local front, among heavyweight stocks, Maybank and Public Bank each gained one sen, CIMB rose three sen, Tenaga Nasional remained unchanged, while IHH Healthcare decreased by three sen.
The broader index board saw the FBM Emas Index fall 42.20 points, the FBMT 100 Index shed 42.88 points, and the FBM Emas Shariah Index dropped 62.36 points. The FBM 70 Index and FBM ACE Index also recorded declines. Sector-wise, the Energy Index edged up slightly, while the Financial Services, Plantation, and Industrial Products and Services Indices saw decreases. The Main Market volume narrowed further, and warrant turnover and ACE Market volume both saw declines as well.