Kuala Lumpur: Bursa Malaysia experienced a downturn on Thursday, closing at an intraday low attributed to significant foreign selling, diverging from the positive performance seen in regional markets.

According to BERNAMA News Agency, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 6.58 points, or 0.42 per cent, settling at 1,555.54 from the previous day's close of 1,562.12. The index initially showed promise, opening 10.49 points higher at 1,572.61 and reaching an intraday high of 1,576.57, before selling pressure led to a decline by the market's close.

The market showed negative breadth, with 517 decliners outnumbering 459 advancers. Additionally, 487 counters remained unchanged, 912 were untraded, and nine were suspended. The turnover saw an increase, with 3.57 billion units valued at RM3.15 billion, compared to 3.40 billion units valued at RM3.08 billion the previous day.

Rakuten Trade Sdn Bhd's equity research vice-president, Thong Pak Leng, noted that regional indices ended higher following an encouraging signal from Wall Street. He highlighted that the US consumer price index for December rose by 0.4 per cent, aligning with forecasts, while the US Federal Reserve's key measure showed slower-than-expected growth, sparking discussions about potential rate cuts in the US.

Thong further mentioned that the FBM KLCI entered the oversold territory due to recent foreign sell-offs. He suggested this situation could attract bargain hunters, particularly towards blue-chip stocks available at lower prices. He anticipated that the benchmark index might fluctuate between 1,550 and 1,560 as the weekend approaches.

In regional markets, Japan's Nikkei 225 gained 0.33 per cent to 38,572.60, Singapore's Straits Times Index increased 0.76 per cent to 3,801.13, South Korea's Kospi rose 1.23 per cent to 2,527.49, China's Shanghai Composite Index advanced 0.28 per cent to 3,236.03, and Hong Kong's Hang Seng Index surged 1.23 per cent to 19,522.89.

UOB Kay Hian Wealth Advisors' head of investment research, Mohd Sedek Jantan, observed that despite the FBM KLCI's negative performance, the FBM 70 Index experienced a minor rebound, and the Bursa Malaysia Technology sector rose by nearly two per cent. He noted that this reflects selective buying, with investors focusing on sectors and stocks with strong growth prospects or attractive valuations. Mohd Sedek also mentioned that US President Joe Biden's farewell address introduced a cautionary tone, particularly regarding the 'tech-industrial complex' and oligarchic influence.

Looking forward, Mohd Sedek predicted that investors would seek further confirmation of optimism through upcoming economic data. He emphasized that key releases from China, including its full-year 2024 GDP, alongside US December industrial production and retail sales figures, will provide crucial insights into the global economic trajectory. Meeting market expectations could bolster investor confidence.

Among heavyweights, Maybank remained steady at RM10.14, Public Bank fell by one sen to RM4.39, and Tenaga decreased by 38 sen to RM13.12. CIMB rose by 14 sen to RM7.99, and IHH increased by one sen to RM7.11. Active stocks like newly-listed CBH Engineering added 5.5 sen to 33.5 sen with 393.05 million shares traded, while TWL Holdings and Velocity Capital remained unchanged.

On broader indices, the FBM Emas Index decreased by 26.67 points to 11,925.05, the FBM Emas Shariah Index fell by 66.34 points to 11,762.70, and the FBMT 100 Index declined by 27.56 points to 11,614.89. Meanwhile, the FBM 70 Index gained 37.69 points to 17,830.52, and the FBM ACE Index increased by 7.74 points to 5,158.94.

Sector-wise, the Energy Index climbed 9.69 points to 831.48, while the Financial Services Index rose 68.41 points to 18,735.33. In contrast, the Industrial Products and Services Index eased by 0.70 of-a-point to 165.35, and the Plantation Index fell by 33.63 points to 7,336.38.

The Main Market volume decreased to 1.64 billion units worth RM2.74 billion, compared to the previous day's 1.78 billion units worth RM2.81 billion. Warrants turnover improved to 1.07 billion units valued at RM93.08 million, and the ACE Market volume surged to 860.68 million units worth RM317.65 million from 578.93 million units worth RM170.99 million.