KUALA LUMPUR: Bursa Malaysia ended sharply lower on Friday, with the FBM KLCI sinking below the 1,700 level and more than 800 counters closing in the red, as surging oil prices triggered a broad sell-off across regional markets.
The FBM KLCI tumbled 18.78 points, or 1.1%, to 1,686.74, its lowest level since July 9, after trading between an intraday high of 1,705.69 and a low of 1,682.56. For the week, the benchmark index fell 1.25%.
All indices on Bursa Malaysia ended in the red, reflecting broad-based selling pressure.
Market breadth was also negative, with losers outnumbering gainers by 810 to 428, or nearly two declining stocks for every advancer.
KLCI component stocks were overwhelmingly negative, with 24 decliners against four gainers, while two counters closed unchanged.
Dealers said sentiment remained cautious as elevated crude oil prices fuelled concerns over renewed inflationary pressures and the outlook for interest rates, prompting investors to trim exposure to equities.
They said the weakness across regional markets further dampened risk appetite, while the FBM KLCI’s break below the psychological 1,700 level added to the cautious tone.
Nevertheless, bargain hunting could emerge following the recent pullback, although near-term market direction is likely to remain sensitive to oil price movements and developments in the Middle East.
Investors are now awaiting the release of U.S. consumer inflation data for August later, which could provide further clues on the outlook for U.S. interest rates.
Among the decliners, Allianz slid 56 sen to RM21.12, Hong Leong Bank fell 52 sen to RM23.08, Sunway Construction lost 47 sen to RM7.44 and F&N declined 44 sen to RM23.56.
In contrast, PETRONAS Chemicals rose 27 sen to RM5.09, Batu Kawan added 12 sen to RM20.16, Concrete Engineering Products
climbed 12 sen to RM4 and Mega Fortris gained nine sen to RM2.40.
Meanwhile, Reuters reported that oil prices slipped on Friday but remained on track to end the week above US$100 a barrel for the first time since mid-May.
Brent crude fell $3.08, or 2.86%, to $104.55 a barrel while U.S. West Texas Intermediate crude fell $2.48, or 2.42%, to $100 per barrel.
Around the region, MSCI's Asia ex-Japan index fell 1.46%, with most major regional markets closing lower:
Japan’s Nikkei 225 closed down 1.93% to 64,011.34;
Hong Kong’s Hang Seng Index fell 0.6% to 24,805.63;
China’s CSI300 Index eased 0.84% to 4,510.16;
Taiwan’s Taiex lost 1.61% to 46,184.85;
South Korea’s Kospi tumbled 1.76% to 6,909.91 and;
Singapore’s Straits Times Index rose 0.08% to 5,694.02 points.
