Kuala lumpur: Bursa Malaysia's benchmark index experienced a decline on Thursday, driven by profit-taking activities in large-cap stocks. Investors redirected their focus towards smaller-cap stocks against a backdrop of weaker regional market performance. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) recorded a decrease of 7.26 points or 0.43 percent, closing at 1,669.57, down from Wednesday's close of 1,676.83.
According to BERNAMA News Agency, the FBM KLCI opened 2.61 points lower at 1,674.22 and fluctuated between 1,666.34 and 1,674.44 throughout the trading session. The broader market witnessed more gainers than losers, with 579 counters gaining, 489 losing, 565 remaining unchanged, 1,016 untraded, and 12 suspended. Turnover slightly increased to 2.79 billion units worth RM2.84 billion, compared to the previous day's 2.73 billion units worth RM2.76 billion.
SPI Asset Management managing partner Stephen Innes noted that Bursa Malaysia traded slightly softer as investors remained cautious following mixed US economic data, which left markets uncertain about the timing and pace of potential US Federal Reserve rate cuts. Innes emphasized that while the headline US figures were inconclusive, details from the labor data were not weak enough to justify aggressive monetary easing.
He stated that in this environment, the FBM KLCI remains range-bound, with support at 1,655-1,660 and resistance at 1,675-1,680. Until clearer confirmation on the Fed's policy outlook emerges, local markets are likely to remain selective. Global markets are also anticipating the release of the US nonfarm payrolls report on Friday.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng viewed the profit-taking as a healthy correction, allowing the market to digest the recent uptrend and consolidate gains. He noted that investors have shifted their attention to smaller-cap stocks with strong fundamentals that remain undervalued, creating attractive trading opportunities for retail investors. Thong anticipates the FBM KLCI to trend within the range of 1,660-1,680 towards the weekend.
Among heavyweight counters, Telekom Malaysia saw a rise, while CIMB and Sunway remained stable. Maybank and Public Bank saw slight declines. On the active list, several stocks advanced while others remained flat or declined. Notably, United Plantations, Allianz Malaysia, Malaysian Pacific Industries, and Hong Leong Financial Group were among the top gainers, while Nestle, Fraser and Neave, Bintulu Port, Petronas Gas, and Petronas Chemicals experienced declines.
On the index board, the FBM Emas Index and the FBM Top 100 Index recorded decreases, while the FBM Mid 70 Index and the FBM ACE Index saw increases. Sector-wise, the Financial Services Index and the Industrial Products and Services Index experienced declines, while the Energy and Plantation Indexes showed gains.
The Main Market volume saw a slight improvement, while warrants turnover decreased. The ACE Market volume expanded, reflecting increased activity. Various consumer products and services, industrial products and services, and other sector counters accounted for significant trading volumes on the Main Market.