The relief rally spurred by yesterday’s ceasefire quickly lost momentum as investors reassessed the credibility and sustainability of the US-Iran truce.
Rakuten Trade Sdn Bhd vice-president of equity research, Thong Pak Leng, said market sentiment in the domestic front has turned cautious again as early signs of strain in the Gulf ceasefire began to emerge.
He said the FBM KLCI dropped towards the key 1,680 support area, with selling pressure evident across broader market segments.
“While the index has managed to hold above this critical level for now, the lack of strong buying conviction and continued external uncertainties suggest that upside momentum remains limited.
“In the meantime, we expect market volatility to stay elevated as investors closely monitor developments in the Middle East and movements in crude oil prices,” Thong said.
In the absence of clear positive catalysts, he expected the FBM KLCI to remain range-bound, with a cautious tone in the near-term.
Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Sedek Jantan said market positioning turned more cautious today with banking stocks leading the decline.
The scenario suggested that investors were beginning to internalise the broader macroeconomic implications of the Middle East conflict, particularly through the inflation and growth channels.
“With oil prices still holding above US$90 per barrel and the crisis now stretching into its sixth week, second-round effects are beginning to materialise,” he told Bernama.
Bursa moved in tandem with most of its regional peers.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 10.07 points to 1,686.24 from Wednesday’s close of 1,696.31.
The benchmark index, which opened 3.66 points lower at 1,692.65, moved between 1,680.01 and 1,692.65 during the day.
In the broader market, losers trounced gainers 651 to 430, while 540 counters were unchanged, 1,087 untraded and 12 suspended.
Turnover eased to 3.05 billion units worth RM2.83 billion from Wednesday’s 3.77 billion units worth RM3.64 billion.
Japan’s Nikkei 225 Index fell 0.73% to 55,895.32, South Korea’s KOSPI declined 1.61% to 5,778.01, Singapore’s Straits Times Index went up 0.31% to 4,980.56, and Hong Kong’s Hang Seng Index eased 0.54% to 25,752.40.
Among Bursa’s heavyweights, Tenaga Nasional advanced six sen to RM14.12, IHH Healthcare added two sen to RM8.83, Petronas Chemicals jumped 23 sen to RM5.82, Maybank declined 16 sen to RM11.16, Public Bank trimmed 10 sen to RM4.60, and CIMB went down 11 sen to RM7.45.
On the most active list, Bumi Armada gained two sen to 37.5 sen, Top Glove climbed 5.5 sen to 79 sen, Borneo Oil was flat at half a sen, and Zetrix AI erased one sen to 75 sen.
Among the top gainers, United Plantations strengthened by 42 sen to RM33.06, Kuala Lumpur Kepong surged 24 sen to RM22.20, Apollo Food rose 23 sen to RM5.94, and Petronas Gas jumped 22 sen to RM18.20.
As for the top losers, Nestle slid 90 sen to RM100.10, Petronas Dagangan fell 58 sen to RM21.40, Ayer Holdings lost 35 sen to RM7.00, and PPB decreased 34 sen to RM11.86.
On the index board, the FBM Top 100 Index contracted 53.36 points to 12,210.56, the FBM Emas Index fell 54.05 points to 12,358.88, the FBM Emas Shariah Index gained 16.50 points to 12,258.14, the FBM ACE Index added 47.72 points to 4,374.84, and the FBM Mid 70 Index rose 9.62 points to 17,198.35.
By sector, the financial services index trimmed 290.45 points to 19,677.27, the plantation index moved up 72.68 points to 8,990.10, the industrial products and services index edged up 0.61 of a point to 184.48, and the energy index lifted 15.80 points to 813.74.
The Main Market volume retreated to 1.92 billion units valued at RM2.63 billion versus 2.09 billion units valued at RM3.31 billion on Wednesday.
Warrants turnover shrank to 951.29 million units worth RM110.58 million versus 1.32 billion units worth RM160.31 million yesterday.
The ACE Market volume decreased to 272.38 million units worth RM93.33 million from 357.92 million units valued at RM161.94 million previously.
Consumer products and services counters accounted for 182.92 million shares traded on the Main Market, industrial products and services (465.83 million), construction (168.65 million), technology (158.09 million), financial services (79.01 million), property (148.63 million), plantation (67.44 million), real estate investment trusts (14.75 million), closed-end fund (nil), energy (311.81 million), healthcare (233.95 million), telecommunications and media (28.23 million), transportation and logistics (35.20 million), utilities (34.01 million), and business trusts (35,500).