At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) slipped by 5.36 points, or 0.30%, to 1,740.22 from Thursday’s close of 1,745.58.
IPPFA Sdn Bhd director of investment strategy and country economist Sedek Jantan said Brent crude oil futures climbed nearly 7% this week amid the lack of progress in reopening the Strait of Hormuz, although prices remain below the key US$110 per barrel threshold.
He said sentiment was further influenced by US president Donald Trump’s comments that China was looking to purchase more US oil, reinforcing expectations of tighter near-term energy market conditions.
“On the domestic front, selling pressure was concentrated in petroleum-related counters as investors reassessed margin outlooks and the broader impact of elevated energy prices on inflation expectations and operating costs,” he told Bernama.
Echoing the statement, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said investors’ optimism over technology stocks faded amid rising inflation concerns, which pushed US Treasury yields to one-year highs and increased expectations of another rate hike this year.
“As for the local bourse, we maintain our cautious stance, given the heightened volatility and uncertainty surrounding global interest rates, geopolitical developments and external market conditions.
“The recent pullback in the FBM KLCI reflects softer risk appetite, although the absence of aggressive selling suggests that underlying support in the market remains relatively intact,” he added.
The benchmark index, which opened 2.11 points higher at 1,747.69, moved between 1,735.51 and 1,748.85 throughout the day.
Market breadth was negative with losers surpassing gainers 814 to 427, while 581 counters were unchanged, 906 untraded, and 47 suspended.
Turnover was marginally higher at 3.92 billion units worth RM3.46 billion compared with 3.91 billion units worth RM3.22 billion on Thursday.
Among heavyweights, Maybank fell 8 sen to RM11.10 and CIMB lost 2 sen to RM7.88, while Public Bank added 8 sen to RM4.91, Tenaga Nasional rose 6 sen to RM14.54 and IHH Healthcare gained 2 sen to RM9.04.
On the most active list, AirAsia X slipped 7 sen to RM1.15, Top Glove decreased 5 sen to 78 sen and Genetec eased 0.5 sen to 32.5 sen, while IRIS jumped 9.5 sen to 27.5 sen and GIIB was 1 sen firmer at 29 sen.
Among the top gainers, MKH jumped 33 sen to RM1.46, Fraser & Neave advanced 30 sen to RM29.0, United Plantations was 28 sen firmer at RM30.26 and Lianson widened 23 sen to RM1.78.
As for the top losers, Nestle slid RM2.20 to RM100.20, Petronas Dagangan down RM1.08 to RM20.30, Kuala Lumpur Kepong fell 56 sen to RM20.32 and Hong Leong Industries eased 46 sen to RM18.34.
On the index board, the FBM Emas Index eased 38.02 points to 12,894.87, the FBMT 100 Index lost 34.83 points to 12,733.31, and the FBM Mid 70 Index declined 31.90 points to 18,505.01.
The FBM Emas Shariah Index decreased by 72.83 points to 12,822.85, and the FBM ACE Index slumped by 40.33 points to 4,742.74.
Sector-wise, the Plantation Index shrank 86.41 points to 8,585.43 and the Industrial Products and Services Index contracted 1.31 points to 199.95, while the Financial Services Index grew 3.25 points to 20,254.31, and the Energy Index strengthened 9.11 points to 808.89.
The Main Market volume slipped to 1.90 billion units valued at RM3.06 billion, from 2.06 billion units valued at RM2.81 billion on Thursday.
Warrants turnover was slightly lower at 1.26 billion units worth RM176.50 million from 1.28 billion units worth RM190.20 million previously.
The ACE Market volume increased to 746.94 million units valued at RM216.80 million from 565.81 million units valued at RM213.06 million yesterday.
Consumer products and services counters accounted for 287.41 million shares traded on the Main Market, industrial products and services (428.31 million), construction (154.04 million), technology (299.32 million), financial services (79.02 million), property (195.26 million), plantation (45.17 million), real estate investment trusts (20.49 million), closed-end fund (6,000), energy (115.69 million), healthcare (141.91 million), telecommunications and media (42.15 million), transportation and logistics (38.06 million), utilities (61.79 million), and business trusts (13,500).