UOB Kay Hian Wealth Advisors head of investment research Sedek Jantan said the local market saw extended selling pressure as investor caution remains high amid rising concerns over a possible announcement by Donald Trump of new tariffs on foreign trade, particularly targeting China.
“While the resilience in US markets and a stronger US dollar could potentially spark buying interest in the local market, especially within export-driven sectors, such as technology and gloves, this optimism warrants a measured outlook.
“The sustained strength of the US dollar may introduce downside risk for emerging markets, with Malaysia potentially facing increased foreign outflows,” he told Bernama.
Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng opined that if Trump imposes substantial tariff hikes, investors worry that the medium-term outlook could become more challenging, with inflation rising and the US Federal Reserve’s (Fed) options for rate cuts becoming limited.
“Due to the unexpected shift in market sentiment, we are staying cautious, considering the increased levels of volatility and uncertainty.
“We advise investors to accumulate blue-chip stocks that have seen major sell-offs, considering their strong fundamentals and reduced valuations,” he said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 0.83 of-a-point to close at 1,608.43 from yesterday’s close of 1,609.26.
The benchmark index, which opened 0.76 of-a-point higher at 1,610.02, moved between 1,605.43 and 1,615.96 during the trading session.
Market breadth was negative with decliners thumping gainers 602 to 413, while 531 counters were unchanged, 858 untraded and 13 suspended.
Turnover expanded to 2.99 billion units valued at RM2.54 billion versus 2.67 billion units worth RM2.02 billion yesterday.
Among the heavyweights, Maybank gained 14 sen to RM10.48, CIMB Group added 4 sen to RM8.20, Public Bank rose 3 sen to RM4.44, Tenaga Nasional was flat at RM14.10, while IHH Healthcare slid 1 sen to RM7.19.
Among the active stocks, Mpire Global edged up 1.5 sen to 21.5 sen, Azam Jaya added 15 sen to RM1.24, and Capital A gained 5 sen to RM1.03.
Meanwhile, Velesto Energy shed 0.5 sen to 18 sen and 3REN dipped 2.5 sen to 41 sen.
On the index board, the FBM Emas Index rose 0.17 of-a-point to 12,180.05, the FBMT 100 Index gained 4.81 points to 11,885.9, the FBM 70 Index garnered 47.3 points to 17,796.53, and the FBM ACE Index improved 5.24 points to 5,131.87.
However, the FBM Emas Shariah Index slipped 27.34 points to 12,147.62.
Sector-wise, the industrial products and services index eased by 2.63 points to 168.9, the energy index dropped 7.85 points to 824.96, while the plantation index gained 117.08 points to 7,879.96, and the financial services index climbed by 82.54 points to 19,144.32.
The Main Market volume increased to 1.45 billion units worth RM2.25 billion against yesterday’s 1.44 billion units valued at RM1.79 billion.
Warrants turnover expanded to 1.1 billion units valued at RM128.82 million from 869.43 million units worth RM91.02 million previously.
The ACE Market volume rose to 438.04 million units worth RM156.28 million compared with 358.1 million units valued at RM140.47 million yesterday.
Consumer products and services counters accounted for 339.89 million shares traded on the Main Market, industrial products and services (272.41 million), construction (108.86 million), technology (140.1 million), SPAC (nil), financial services (59.02 million), property (139.96 million), plantation (97.09 million), REITs (10.18 million), closed/fund (18,500), energy (105.05 million), healthcare (81.18 million), telecommunications and media (28.2 million), transportation and logistics (29.27 million), utilities (35.11 million), and business trusts (98,100).