Bursa Malaysia’s benchmark index declined due to lack of buying catalysts, driven primarily by selling in construction and banking sectors, with healthcare stocks seeing some buying interest. The market reflects mixed regional performance influenced by geopolitical tensions. Investors remain cautious ahead of FOMC meetings, while trading volumes show varied investor interest across sectors.
Bursa Malaysia’s benchmark index recorded a decline owing to a lack of buying catalysts, as selling was predominantly observed in the construction and banking sectors. However, healthcare stocks displayed some buying interest amidst this downturn. The FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 10.15 points or 0.66 percent, concluding at 1,517.66, after opening at 1,513.29 and fluctuating throughout the trading session.
The market sentiment reflects a mixed performance across key regional indices, notably influenced by escalating geopolitical tensions in the Middle East. On the broader market, the number of losers surpassed gainers, with 449 stocks declining and only 428 advancing. Additional statistics indicate that 481 stocks remained unchanged, 1,078 were untraded, and seven were suspended. The day’s turnover decreased to 2.92 billion units worth RM2.73 billion compared to the previous day’s figures.
Attention remains on potential tariff escalations as concerns grow over trade negotiations involving the United States. Thong Pak Leng from Rakuten Trade observed that value investors might engage in bargain hunting, as many fundamentally strong stocks now trade at discounted prices. He predicts the FBM KLCI will trend between 1,500 and 1,530 for the week ahead.
Regarding U.S. market fluctuations, Mohd Sedek Jantan from UOB Kay Hian noted investor caution preceding the Federal Open Market Committee (FOMC) meeting, which influenced Wall Street’s decline. While commodities and utilities stocks enjoyed gains, overall market dynamics remained cautious.
Heavyweights such as Maybank and CIMB posted losses, with Maybank dropping to RM10.36 and CIMB to RM6.93, whereas IHH Healthcare ended positively at RM7.10. On the index board, although the FBM Emas and FBMT 100 indices fell, the FBM ACE Index experienced a slight increase.
Sector performance showed the Financial Services Index declined significantly, while both the Energy and Plantation Indices reported increases. The Main Market volume saw a slight rise, contrasting with declines in the ACE Market and warrant turnover, indicating mixed trading activity across different market segments.
Consumer products dominated trading volumes on the Main Market, followed by industrial products and construction stocks. This dispersion of trading reflects varied investor interests within different sectors amidst the overall market decline.
In summary, Bursa Malaysia ended lower due to a lack of buying catalysts, primarily driven by declines in the construction and banking sectors. Despite some interest in healthcare stocks, the market’s overall performance was hindered by geopolitical tensions and investor caution prior to significant economic meetings. The index’s fluctuation suggests an uncertain market environment, while value investors may find opportunities in discounted stocks moving forward.
Original Source: www.thestar.com.my
