Bursa Malaysia closes lower in sync with regional markets
KUALA LUMPUR: Bursa Malaysia closed lower in tandem with the weak performance across the region, said an analyst.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 0.69 per cent, or 10.51 points lower, at 1,501.44 from Wednesday's close of 1,511.95.
The benchmark index opened 0.99 of-a-point higher at 1,512.94, its highest for the day, and thereafter languished throughout the session to hit a low of 1,501.38 just before closing.
Market breadth was subdued, with 660 decliners outnumbering 298 gainers. Another 460 counters were unchanged, 1,005 were untraded and 11 suspended.
Turnover expanded to 2.81 billion units valued at RM1.69 billion compared with Wednesday's 2.42 billion units worth RM1.79 billion.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said key regional indices closed lower as geopolitical tensions escalated following reports that the United States (US) was preparing for a potential military action against Iran.
At the same time, the US Federal Reserve (Fed) warned that the ongoing trade war led by President Donald Trump may fuel inflation and hinder US economic expansion.
Market participants closely monitored the Fed's latest meeting on Tuesday and Wednesday, as policymakers evaluated interest rates amid the president's tariff initiative.
"On the domestic front, we maintain a vigilant stance in response to escalating global volatility and uncertainties," he told Bernama.
On the other hand, Thong said the benchmark index is near its 1,500 psychological support level and should this level be broken, the next support level will be 1,485 points followed by 1,470 points.
At current valuation, he said the FBM KLCI is trading at around 12 times calendar year 2025 price-to-earnings ratio, which is way below its long-term average of more than 16 times.
"We advise investors to focus on blue-chips stocks with strong fundamentals that offer high dividends such as those in banking, telecommunications, and utilities sectors.
"We anticipate the FBM KLCI to trend within the 1,500-1,510 range towards the weekend," said Thong.
Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan said the FBM KLCI closed lower sans catalysts, causing market participants to remain edgy and uncertain.
From January to May, he said fragile macroeconomic conditions and volatile markets were driven by fluctuating tariffs, Trump's tax bill, and Middle East tensions.
Policy uncertainty, sticky inflation, and questions about the Fed's independence further fuelled concerns.
For Bursa Malaysia, while foreign participation has been trending downward, it has not yet reached the the lows seen in mid-April, he added.
Among the heavyweights, Maybank shed 2.0 sen to RM9.60, Tenaga and IHH Healthcare remained unchanged at RM14.22 and RM6.85 respectively, Public Bank slipped 5.0 sen to RM4.19, and CIMB declined 7.0 sen to RM6.58.
For the most active stocks, PUC shed 1.0 sen to 2.0 sen, Tanco declined 2.5 sen to 95.5 sen, MYEG eased 2.5 sen to 90.5 sen, SNS Network Technology perked up 1.0 sen to 54.5 sen, and Borneo Oil was flat at 1.0 sen.
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