Kuala Lumpur: Bursa Malaysia extended its losses for a second straight day, aligning with weak regional market performance influenced by negative signals from global equities, according to an analyst.
According to BERNAMA News Agency, at 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 16.22 points, or 1.02 percent, closing at 1,568.03 compared to Monday's close of 1,584.25. The market bellwether opened 1.52 points lower at 1,582.73 and fluctuated between 1,564.32 and 1,583.74 throughout the trading day.
The broader market saw decliners outnumber gainers 905 to 217, with 390 counters unchanged, 838 untraded, and seven suspended. Turnover increased to 3.14 billion units worth RM2.64 billion, up from 2.69 billion units worth RM2.31 billion on Monday.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng noted that losses were predominantly focused on chipmakers and technology stocks as investor sentiment soured ahead of Nvidia's earnings report. He also highlighted potential impacts from US President Donald Trump's team's efforts to impose stricter controls on China's chip industry, which could affect Chinese technology stocks and heighten tensions between the US and China.
Thong stated that top companies have expressed concerns about growing uncertainty surrounding US trade policies, fearing higher tariffs and inflationary pressures. Local analysts maintain cautious views on the market due to increasing volatility and uncertainty in the macro environment. Thong advised investors to seek opportunities in large-cap stocks with solid dividend yields, particularly in sectors such as banking, plantations, and real estate investment trusts (REITs).
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan remarked that the FBM KLCI recorded its steepest single-day decline this month. Investors continued to reassess downside risks amid ongoing trade policy uncertainty and deteriorating global macroeconomic conditions. From a technical perspective, the FBM KLCI remains vulnerable, with immediate support identified at 1,555 and key structural levels at the August 6, 2024, low of 1,529 and the psychological 1,500 thresholds being crucial inflection points.
Bursa Malaysia heavyweights saw mixed results, with Maybank easing two sen to RM10.46, CIMB slipping 15 sen to RM8.23, Public Bank easing one sen to RM4.46, Tenaga Nasional dropping 24 sen to RM13.40, while IHH Healthcare gained six sen to RM7.31. Active stocks included TWL Holdings, which inched up half-a-sen to 2.5 sen, and Ingenieur Gudang, which shed half-a-sen to 4.5 sen.
On the index board, the FBM Emas Index tumbled 160.72 points to 11,756.29, while the Financial Services Index sank 160.97 points to 19,145.61. Other sectors experienced declines as well, reflecting the broader market downturn.