Kuala lumpur: Bursa Malaysia ended Thursday's trading session on a lower note, mirroring the weaker performance of regional counterparts. The optimism spurred by the recent ceasefire between the United States and Iran quickly dwindled as investors reevaluated the durability of the truce.
According to BERNAMA News Agency, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 10.07 points to settle at 1,686.24, down from Wednesday's close of 1,696.31. The index, which began the day 3.66 points lower at 1,692.65, fluctuated between 1,680.01 and 1,692.65 throughout the trading session.
Market sentiment turned cautious as signs of strain in the Gulf ceasefire began to emerge, noted Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd. The FBM KLCI approached the critical 1,680 support level, with selling pressure spread across various market segments. He highlighted that while the index has remained above this key level, the lack of robust buying interest and ongoing external uncertainties continue to restrict upward momentum.
Thong also pointed out that market volatility is expected to remain high as investors monitor developments in the Middle East and fluctuations in crude oil prices. In the absence of clear positive catalysts, he anticipates the FBM KLCI to trade within a range-bound pattern with a cautious outlook in the near term.
Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, observed that market positioning turned more cautious, with banking stocks leading the decline. This suggests that investors are beginning to internalize the broader macroeconomic implications of the West Asian conflict, particularly in terms of inflation and growth.
Bursa Malaysia's performance was in line with most regional markets. Japan's Nikkei 225 Index decreased by 0.73 per cent, South Korea's KOSPI declined 1.61 per cent, while Singapore's Straits Times Index saw a slight increase of 0.31 per cent, and Hong Kong's Hang Seng Index fell 0.54 per cent.
Among the heavyweights, Tenaga Nasional, IHH Healthcare, and Petronas Chemicals saw gains, while Maybank, Public Bank, and CIMB registered declines. On the most active list, Bumi Armada and Top Glove recorded gains, while Borneo Oil remained unchanged and Zetrix AI saw a decrease.
Sector-wise, the Financial Services Index decreased significantly, while the Plantation and Industrial Products and Services Indexes saw slight gains. The Main Market's volume retreated, and warrants turnover also shrank compared to the previous day.
Consumer products and services, industrial products and services, and construction were among the sectors accounting for significant shares traded on the Main Market, highlighting the breadth of trading activity across different sectors.