At the same time, investor sentiment was dampened by the US Federal Reserve’s decision to maintain interest rates and the People’s Bank of China (PBOC)’s unexpected decision to keep its key lending rates unchanged.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Sedek Jantan said while the Fed’s decision was largely anticipated, expectations of further monetary easing from China were unmet, leading to disappointment among investors.
He added that Malaysia’s stock market, like its regional peers, reacted negatively as concerns over China’s economic recovery weighed on sentiment.
“Hong Kong stocks retreated from a three-year high after the PBOC kept its loan prime rates unchanged for the fifth consecutive month, highlighting the lack of fresh stimulus to support growth.
“Given Malaysia’s strong trade and investment linkages with China, any signs of slower growth or restrained policy support from Beijing tend to have spillover effects on local equities,” he told Bernama.
Regionally, Hong Kong’s Hang Seng Index declined 2.23% to 24,219.95, Japan’s Nikkei 225 slid 0.25% to 37,751.88, while Singapore’s Straits Times Index went up 0.57% to 3,930.49.
Back home, the FTSE Bursa Malaysia KLCI (FBM KLCI)’s decline today was primarily driven by losses in the healthcare services and telecommunications sectors, while gains were led by utilities stocks.
“The healthcare sector remained under pressure following ongoing concerns related to insurance premium adjustments and regulatory price caps, which have raised uncertainty over profit margins and future earnings prospects,” Sedek said.
At 5pm, the FBM KLCI slipped by 13.50 points, or 0.89%, to 1,504.16 from yesterday’s close of 1,517.66.
The benchmark index opened 4.74 points higher at 1,522.40 and moved between 1,504.14 and 1,524.23 throughout the day.
On the broader market, gainers edged losers 479 to 453, while 459 counters were unchanged, 1,046 untraded, and 17 suspended.
Turnover rose to 3.27 billion units worth RM2.64 billion against yesterday’s 2.92 billion units worth RM2.73 billion.
Heavyweights, Press Metal and MISC added 1 sen each to RM5.01 and RM7.13, respectively, Petronas Gas rose 2 sen to RM16.94, SD Guthrie increased 3 sen to RM4.86, while Maybank trimmed 18 sen to RM10.18, Public Bank dipped 6 sen to RM4.48, and IHH Healthcare lost 33 sen to RM6.77.
As for the active stocks, Reneuco put on 1 sen to 5 sen, IJM Corp advanced 7 sen to RM2, Pertama Digital, and Innature were flat at 17 sen and 21.5 sen, while VS Industry gave up 9.5 sen to 81 sen.
On the index board, the FBM Emas Index fell 62.69 points to 11,301.37, the FBMT 100 Index declined 69.86 points to 11,051.83, and the FBM Emas Shariah Index dipped 31.97 points to 11,026.82.
The FBM 70 Index increased 13.31 points to 16,273.52 and the FBM ACE Index climbed 67.22 points to 4,778.71.
Sector-wise, the financial services index tumbled 207.14 points to 18,405.30, the industrial products and services index eased 0.61 of-a-point to 154.16, the energy index gained 9.91 points to 750.30, and the plantation index perked up 14.12 points to 7,451.49.
The Main Market volume improved to 1.55 billion units worth RM2.35 billion from 1.48 billion units worth RM2.46 billion yesterday.
Warrants turnover expanded to 1.39 billion units worth RM194.65 million from 1.11 billion units worth RM165.83 million previously.
The ACE Market volume advanced to 323.95 million units worth RM93.78 million from 318.77 million units valued at RM101.24 million yesterday.
Consumer products and services counters accounted for 231.06 million shares traded on the Main Market, industrial products and services (250.97 million), construction (128.36 million), technology (224.03 million), SPAC (nil), financial services (112.02 million), property (96.43 million), plantation (13.87 million), REITs (20.12 million), closed/fund (7,900), energy (24.53 million), healthcare (85.24 million), telecommunications and media (37.44 million), transportation and logistics (36.80 million), utilities (69.31 million), and business trusts (77,200).