Kuala lumpur: Bursa Malaysia's benchmark index concluded Thursday's trading session with a decline, primarily due to profit-taking activities in large-cap stocks, as investors pivoted their focus towards smaller-cap stocks amidst a weaker regional market landscape. At the close of the market, the FTSE Bursa Malaysia KLCI (FBM KLCI) registered a fall of 7.26 points or 0.43 percent, settling at 1,669.57 compared to the previous day's closing of 1,676.83.
According to BERNAMA News Agency, the FBM KLCI opened the day 2.61 points lower at 1,674.22, fluctuating between 1,666.34 and 1,674.44 throughout the trading session. The broader market saw gainers outnumbering losers with 579 advancing stocks against 489 decliners, while 565 counters remained unchanged, 1,016 were untraded, and 12 were suspended. Turnover was noted at a slightly higher volume, with 2.79 billion units traded, valued at RM2.84 billion, compared to the previous day's 2.73 billion units worth RM2.76 billion.
Stephen Innes, managing partner at SPI Asset Management, commented on the softer trading of Bursa Malaysia, attributing it to investor caution after mixed economic data from the US created uncertainty regarding the potential timing and pace of US Federal Reserve rate cuts. He noted that while the main US figures were inconclusive, secondary labor data was not weak enough to warrant aggressive monetary easing, thereby restraining global risk appetite.
Innes observed that under these conditions, the FBM KLCI is likely to remain range-bound, with support levels between 1,655 and 1,660 and resistance from 1,675 to 1,680. He projected that local markets would remain selective until there is a clearer indication of the Fed's policy direction. He also highlighted the anticipation surrounding the release of the US nonfarm payrolls report expected on Friday.
Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd, described the profit-taking as a healthy correction, which allows the market to assimilate recent gains and consolidate. He noted a shift in investor interest towards smaller-cap stocks with strong fundamentals that remain undervalued, presenting attractive trading opportunities for retail investors in a selective market environment. Pak Leng anticipated the FBM KLCI to trend within the 1,660-1,680 range heading into the weekend.
In terms of specific stock performances, heavyweight counters showed mixed results, with Telekom Malaysia rising by 12 sen to RM7.92, while CIMB and Sunway remained unchanged at RM8.06 and RM5.58, respectively. Maybank and Public Bank saw a decrease of four sen each, closing at RM10.64 and RM4.49.
On the most active list, Dagang NeXchange increased by 3.5 sen to 36 sen, Tanco rose three sen to RM1.23, and Bina Puri gained half-a-sen to 30 sen. UEM Sunrise advanced five sen to 66 sen, while Zetrix AI remained flat at 81.5 sen, and MMAG decreased by half-a-sen to seven sen.
Among the top gainers, United Plantations surged RM1.68 to RM33.12, Allianz Malaysia increased 80 sen to RM21.0, and Malaysian Pacific Industries along with Hong Leong Financial Group both climbed 40 sen to RM32.40 and RM19.36, respectively. Conversely, top decliners included Nestle, dropping RM1 to RM121.0, Fraser and Neave, sinking 38 sen to RM35.70, Bintulu Port, decreasing 20 sen to RM5.30, Petronas Gas, sliding 18 sen to RM18.20, and Petronas Chemicals, which shed 16 sen to RM3.20.
The performance on the index board reflected mixed movements, with the FBM Emas Index decreasing by 10.68 points to 12,349.42, and the FBM Top 100 Index slipping by 15.20 points to 12,136.75. However, the FBM Emas Shariah Index showed a slight increase of 0.29 of-a-point to 12,167.04. The FBM Mid 70 Index rose by 146.38 points to 17,319.58, and the FBM ACE Index climbed by 17.90 points to 4,982.21.
Sector-wise, the Financial Services Index decreased by 34.46 points to 19,739.73, the Energy Index edged up by 0.66 of-a-point to 770.31, the Plantation Index increased by 39.76 points to 8,437.70, and the Industrial Products and Services Index eased by 0.56 of-a-point to 171.90.