Rakuten Trade's Thong expects the FBM KLCI to remain range-bound between 1,615 and 1,635 for the rest of the week.
KUALA LUMPUR: The FBM KLCI reversed Tuesday’s gains to close lower yesterday, as investors took profit amid the negative performance of regional peers.
At 5pm, the FBM KLCI fell 14.96 points or 0.92% to end at its intraday low of 1,614.83 from Tuesday’s close of 1,629.79.
The benchmark index opened 0.87 of-a-point easier at 1,628.92 and hit an intraday high of 1,631.15 during the early morning session.
Decliners trounced advancers 827 to 285 on the broader market, while 497 counters were unchanged, 761 untraded, and 10 others suspended.
Turnover narrowed to 3.59 billion units valued at RM3.06bil against Tuesday’s 3.91 billion units valued at RM3.29bil.
UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan noted that major Asian indices followed Wall Street’s downbeat performance, driven by the ripple effects of a broad-based sell-off in US Treasuries.
He said investors remained cautious, with many refraining from taking significant positions ahead of key US employment data due later this week.
Adding to the uncertainty is whether incoming President Donald Trump will shift towards a looser tariff policy.
“Markets are also factoring in the broader implications of Trump 2.0 policies following his inauguration on Jan 20, alongside persistent geopolitical risks, China’s ongoing economic challenges, a weakened yuan and policy moves by major central banks,” he told Bernama.
Mohd Sedek said on the home front, yesterday’s trading session saw limited gains, with only two components in the FBM KLCI finishing in positive territory while the majority posted losses.
Sectoral indices on Bursa Malaysia reflected this broader weakness, as all sectors faced pressure from prevailing negative sentiment.
“However, there was notable demand for stocks poised to benefit from the Johor-Singapore Special Economic Zone, following the official signing yesterday.
“Encouragingly, total trading volume remained robust at 3.59 billion shares, signalling strong market participation which bodes well for liquidity,” he added.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng expects the FBM KLCI to remain range-bound between 1,615 and 1,635 for the rest of the week.
Among the heavyweights, Petronas Gas Bhd
added six sen to RM17.82 and YTL Power International Bhd gained one sen to RM4.51, while Tenaga Nasional Bhd and Press Metal Aluminium Holdings Bhd were flat at RM14.32 and RM4.79 respectively.
