Kuala lumpur: Bursa Malaysia remained in negative territory at midday, aligning with weaker regional market performance, influenced by selling pressure in selected heavyweights. At 12:30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 7.42 points to 1,579.18 from the previous day’s close of 1,586.60. The benchmark index had initially opened slightly higher at 1,586.91 and fluctuated between 1,577.81 and 1,595.31 during the morning trading session.
According to BERNAMA News Agency, market breadth was negative, with 577 losers surpassing 307 gainers, while 491 counters remained unchanged, 1,189 were untraded, and 17 were suspended. Turnover amounted to 1.40 billion units worth RM1.17 billion. Hong Leong Investment Bank Bhd noted that Wall Street saw gains overnight as a softer-than-expected United States consumer price index bolstered expectations for a rate cut during the US Federal Open Market Committee meeting on September 17. Risk sentiment was further supported by US President Donald Trump’s 90-day tariff truce with China and optimism ahead of the Trump-Putin ceasefire summit in Alaska, aimed at resolving the three-year Russia-Ukraine conflict. Attention now shifts to the US Producer Price Index release for insights into the US Federal Reserve’s preferred inflation gauge.
Back in Malaysia, the FBM KLCI almost reached the 1,590 mark at the previous day’s close, indicating sustained bullish momentum, with resistance levels adjusted higher to 1,600, 1,615, and 1,640. On a healthy pullback, key support levels are identified at 1,571, 1,557, and 1,547. A decisive break below these levels could lead to a deeper consolidation towards 1,535 and 1,522. However, near-term volatility may persist due to ongoing foreign selling.
The investment bank highlighted the year-to-date outflows of RM14.50 billion, the highest since the pandemic-induced exodus of RM24.6 billion in 2020, and the tariff overhang as Malaysia awaits US clarification on Malaysia-made chips after Trump’s proposal of a 100 percent levy on semiconductor chips produced outside the US. Additionally, near-term volatility could continue, influenced by muted earnings season and limited upside catalysts from corporate results. Domestic policy risks, including concerns over subsidy rationalization and potential sales and service tax expansion, may dampen consumer sentiment and cloud earnings visibility.
Among the heavyweights, YTL Power International decreased by 13 sen to RM4.16, YTL Corporation fell by 8 sen to RM2.49, and Tenaga Nasional dropped by 14 sen to RM13.66. Meanwhile, IHH Healthcare rose by 4 sen to RM6.95, and Petronas Chemicals increased by 3 sen to RM3.63. In active trade, Oxford Innotech advanced 2.5 sen to 40.5 sen, while Mtouche Technology and TWL inched up half-a-sen to 3.5 sen and 3.0 sen, respectively. Tanco rose 1.5 sen to 72 sen, whereas XOX Technology slipped half-a-sen to 3.0 sen.
Across the broader market, the FBM Emas Index dropped 58.86 points to 11,745.32, the FBMT 100 Index decreased by 60.56 points to 11,528.45, the FBM Emas Shariah Index reduced by 63.48 points to 11,705.07, the FBM ACE Index weakened by 11.57 points to 4,643.04, and the FBM Mid 70 Index declined by 115.49 points to 16,660.87. Sector-wise, the Financial Services Index slipped by 37.65 points to 18,036.25, the Plantation Index decreased by 17.61 points to 7,580.38, the Industrial Products and Services Index edged down by 0.17 of a point to 158.34, and the Energy Index shaved 2.26 points to 735.38.