KUALA LUMPUR: Bursa Malaysia was marginally lower at midday on Friday as investors remained cautious amid elevated US Treasury yields, higher oil prices and lingering geopolitical uncertainties.
At lunch break, the benchmark FBM KLCI declined 1.14 points, or 0.07% to 1,671.17.
There were 474 gainers, 506 losers, and 503 counters traded unchanged on the Bursa Malaysia. A total of 2.012 billion shares valued at RM1.25bil were traded.
Apex Securities expects the FBM KLCI to remain cautious and range-bound in the near term, as elevated US Treasury yields, higher oil prices, persistent foreign selling and geopolitical uncertainties continue to weigh on investor sentiment.
The brokerage said rising bond yields, coupled with expectations of further US Federal Reserve rate hikes, could continue to pressure equity valuations, while developments in the US-Iran conflict remained a key source of geopolitical and inflationary risks.
It said investors would also monitor developments following the Trump-Xi meeting, particularly on trade, artificial intelligence (AI) and critical minerals, following the extension of the US-China trade truce.
“Domestically, attention will turn to the upcoming Melaka state election following the dissolution of the state assembly on Sept 23, while Budget 2027 on Oct 9 will also remain in focus.
“Against this backdrop, market volatility could remain elevated, with a sustained recovery likely requiring clearer external catalysts and improved global risk sentiment,” Apex said.
Meanwhile, TA Securities expects stocks to remain in consolidation mode as market sentiment remains fragile amid lingering tensions in the Middle East and inflationary risks stemming from elevated oil prices.
The brokerage said immediate resistance for the FBM KLCI remained at the June 2026 high of 1,722 points, followed by stronger resistance at 1,759 points and 1,805 points.
It said immediate support was pegged at the June 2026 low of 1,655 points, with stronger support at 1,610 points and 1,564 points.
Separately, Hong Leong Investment Bank Research said the FBM KLCI could remain in risk-off consolidation as investors awaited greater clarity on the Trump-Xi summit and a de-escalation in US-Iran tensions.
It said elevated oil prices and bond yields, coupled with a hawkish US Federal Reserve stance, could continue to weigh on sentiment.
“Domestically, persistent foreign outflows, potential second-half earnings disappointments and household affordability concerns amid higher-for-longer costs, alongside upcoming Melaka polls and lingering GE16 speculation, could weigh on sentiment ahead of Budget 2027 on Oct 9,” it said.
Meanwhile, HLIB Research said the RM28bil in potential Chinese investments and the proposed East Coast Rail Link (ECRL) extension to Rantau Panjang could support Malaysia’s longer-term investment and regional connectivity prospects, although the near-term impact may remain limited pending implementation.
Renewable energy stocks remained on investors’ radar, with Pekat Group rising 29 sen to RM2.93, Solarvest Holdings gaining 28 sen to RM4.18, and Samaiden adding 21 sen to RM2.90.
Among the decliners, Nestle fell RM1.42 to RM90.04, Dutch Lady
lost 36 sen to RM30, PETRONAS Dagangan shed 28 sen to RM19.72, while Sarawak Oil Palms Bhd declined 27 sen to RM5.71.
