Bursa Malaysia’s FBM KLCI ended down 10.15 points due to declines in construction and banking sectors, influenced by geopolitical tensions and trade concerns. Trading volume decreased to RM2.73 billion with mixed sector performance and value opportunities noted amid broader risk-off sentiment.
Bursa Malaysia’s benchmark index declined due to selling pressures primarily in the construction and banking sectors, as noted by analyst Thong Pak Leng from Rakuten Trade Sdn Bhd. The FTSE Bursa Malaysia KLCI (FBM KLCI) closed 10.15 points lower, finishing at 1,517.66, influenced by regional market fluctuations amid geopolitical tensions in the Middle East.
The index opened lower, at 1,513.29, fluctuating between 1,512.21 and 1,523.39 throughout the session. Market statistics showed decliners outpacing advancers, with 449 losers compared to 428 gainers, and 481 stocks remained unchanged. Trading turnover decreased to 2.92 billion units worth RM2.73 billion.
Concerns about potential trade tariff escalations further weighed on market sentiment, especially amid recent threats from Donald Trump regarding trade measures. The support level for the index is anticipated at around 1,500 as value investors find opportunities in fundamentally strong but discounted stocks.
Mohd Sedek Jantan, head of investment research at UOB Kay Hian Wealth Advisors, pointed out that Wall Street’s declines added to investor caution before the Federal Open Market Committee (FOMC) meeting. Despite these challenges, commodity and utility sectors recorded gains.
The overall market sentiment remains cautious, reflecting recent Indonesia stock market declines due to government revenue losses, which affected Malaysian shares with exposure in Indonesia. The Bank of Japan’s decision to maintain its interest rate at 0.50% aligned with expectations and added to market stability considerations.
Major stocks experienced mixed movements, with Maybank and CIMB declining, while IHH Healthcare showed marginal gains. On the index board, significant drops were noted across various indices, including the FBM Emas Index and the FBM 70 Index, though the FBM ACE Index saw a slight gain.
Sector performance varied, with notable drops in the Financial Services Index and the Industrial Products and Services Index, while the Energy and Plantation Indices made gains. Main Market volume slightly increased, whereas turnover in other segments, particularly warrants and the ACE Market, showed reductions.
Consumer products and services topped trading volume on the Main Market, followed by industrial products, construction, and technology shares. The trading environment reflects ongoing economic concerns mixed with opportunities for strategic investments in the Malaysian market.
Bursa Malaysia faced a downturn primarily due to selling in the construction and banking sectors, amid geopolitical tensions and trade concerns. Despite the decline, value investors might find possibilities among discounted stocks. Key indices experienced significant drops while some sectors managed gains. The overall market sentiment remains cautious ahead of Federal Open Market Committee decisions, indicating a mixed trading atmosphere for the week ahead.
Original Source: www.thestar.com.my
