KUALA LUMPUR: Bursa Malaysia traded lower at midday, with nearly 900 counters in the red as negative regional sentiment weighed on investor appetite.
At lunch break, the FBM KLCI fell 11.23 points, or 0.66% to 1,682.20, recovering from its intramorning low of 1,676.95.
Losers outpaced gainers 874 to 255, while 420 counters were unchanged. About 2.06 billion shares, valued at RM1.4bil, changed hands.
Reuters reported that Asian stocks fell sharply on Monday as investors sold AI-related shares on concerns the rally had run too far, too fast, while renewed hostilities involving Iran lifted oil prices.
Technology stocks in South Korea and Taiwan led the decline, recording their steepest losses in three months.
Among the decliners, Nestle fell RM1.34 to RM92.94, Malaysian Pacific Industries
dropped RM1.08 to RM45.72, United Plantations lost 50 sen to RM31.70 and F&N slipped 20 sen to RM26.20.
On the upside, Ideal Capital was Bursa Malaysia's top gainer, surging 30 sen to RM4.10. Kim Loong rose 20 sen to RM2.75, Carlsberg added 18 sen to RM16.18 and PETRONAS Chemicals gained 13 sen to RM5.56.
Apex Securities expects near-term market sentiment to remain cautious after stronger-than-expected US nonfarm payrolls data reinforced expectations that interest rates will stay higher for longer, pushing Treasury yields higher.
However, it said domestic sentiment should remain supported by resilient economic fundamentals and a stable monetary policy environment.
“Investors are also expected to closely monitor developments surrounding the Johor and Negeri Sembilan State Election, as the outcome could provide further clues on GE16 speculation and broader political sentiment.
“Meanwhile, persistent foreign fund outflows and a weaker ringgit may continue to cap upside momentum, although ongoing infrastructure and data centre investments should help cushion downside risks,” Apex said.
Meanwhile, Hong Leong Investment Bank (HLIB) Research said the FBM KLCI is likely to remain range-bound amid persistent Middle East tensions and risks surrounding the Strait of Hormuz.
The research house said market sentiment continues to be weighed by geopolitical uncertainties, concerns over global growth, a softer first-quarter 2026 earnings season, cautious corporate guidance and sustained foreign fund outflows.
Sentiment is also affected by a proposed 10% US tariff on Malaysia and 59 other economies over alleged forced-labour compliance issues, as Washington rebuilds its tariff agenda following recent legal setbacks.
“Locally, political risk premiums have edged higher despite the PM’s reaffirmation ruling out a near-term GE16, with Johor and Negeri Sembilan prepare for snap polls.
“This has heightened concerns over broader political stability, spillover risks to other state polls, and lingering speculation of an earlier-than-scheduled GE16 (due Feb 2028),” HLIB Research said.
