Kuala Lumpur: Bursa Malaysia experienced a downturn at midday as widespread selling in small-cap stocks pushed the broader market into negative territory. At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 13.81 points, or 0.89 percent, to 1,522.65 from the previous close of 1,536.46.
According to BERNAMA News Agency, the benchmark index opened 10.45 points lower at 1,526.01 and fluctuated between 1,519.76 and 1,527.19 during the morning trading session. Market breadth was weak, with 928 losers surpassing 113 gainers. Meanwhile, 308 counters remained unchanged, 1,025 were untraded, and seven were suspended. The turnover was 2.26 billion shares valued at RM1.53 billion.
Malacca Securities Sdn Bhd stated that new US trade policies might provoke increased retaliation from trade partners, potentially affecting the global economy. The brokerage highlighted that traders would focus on US inflation data, the US producer price index, and US unemployment claims this week to assess monetary policy and economic sentiment. It noted that with weaker sentiment overseas, selling pressure could persist locally.
The brokerage suggested that traders might shift towards stable and defensive sectors, adopting a more conservative strategy. It expressed a preference for the banking sector, expecting bargain hunting due to stable loan growth and attractive dividends. Additionally, real estate investment trusts might gain interest amid recovering footfall.
Among the heavyweights, both Maybank and Petronas Gas decreased by four sen to RM10.54 and RM16.64, respectively. IHH Healthcare declined seven sen to RM7.23. In contrast, CelcomDigi increased by two sen to RM3.57, and Sime Darby rose three sen to RM2.11.
Regarding active stocks, MYEG dropped 2.5 sen to 88 sen, Nationgate fell two sen to RM1.12, and Velesto lowered by half-a-sen to 15 sen. NEXG and KNM remained unchanged at 26 sen and 5.0 sen, respectively.
On the index board, the FBM Emas Index decreased by 150.97 points to 11,262.12, the FBM 70 Index fell 324.43 points to 15,801.56, the FBM Emas Shariah Index was down 183.59 points to 10,844.64, the FBM ACE Index dropped 126.81 points to 4,395.53, and the FBMT 100 Index declined 133.66 points to 11,064.17.
By sector, the Plantation Index fell 90.97 points to 7,327.74, the Financial Services Index decreased by 122.19 points to 18,846.25, the Industrial Products and Services Index was down 2.77 points to 150.88, and the Energy Index reduced by 21.92 points to 686.11.