UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Sedek Jantan said the FTSE Bursa Malaysia KLCI (FBM KLCI) extended its downtrend, weighed by continued foreign fund outflows for a sixth straight session, as investors remained risk-averse amid unresolved global trade tensions.
“This came despite comments earlier today from investment, trade and industry minister Tengku Zafrul Aziz, who suggested the US may revise its proposed tariffs on Malaysian exports to a lower baseline of 10% – a notable development that nevertheless failed to significantly lift market sentiment,” he told Bernama.
“The market retained a defensive posture, as uncertainties surrounding trade tariffs continue to cloud the outlook.
“This caution persisted despite constructive signals from European markets and limited cues from Wall Street, where investors were processing Trump’s decision to defer the implementation of 50% tariffs on EU goods from June 1 to July 9,” he added.
Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said key Asian markets ended mostly lower as investors are cautiously awaiting the latest developments on Trump’s trade war.
“Market participants are growing uneasy as Trump’s unpredictable policy announcements and proposed tax cut extensions undermine confidence in the US economy and drive US Treasury yields higher.
“On the domestic front, Malaysian equities remain attractive, supported by undervaluation, stronger corporate earnings, and an improving economic backdrop,” he added.
“Nevertheless, the FBM KLCI is likely to stay in a consolidation phase in the near-term, as cautious sentiment prevails amid rising global uncertainties,” said Thong.
“We expect the index to trade within the 1,520–1,550 range this week,” he said.
At 5pm, the FBM KLCI slipped 8.14 points, or 0.53%, to 1,526.16 from yesterday’s close of 1,534.30.
The benchmark index opened 0.94 of-a-point higher at 1,535.24, and fluctuated between 1,521.93 and 1,535.41 throughout the day.
In the broader market, decliners outpaced gainers 575 to 338, with 474 counters unchanged, 1,008 untraded and 17 suspended.
Turnover declined to 2.65 billion units worth RM1.85 billion compared with yesterday’s 3.12 billion units worth RM1.63 billion.
Among heavyweight counters, Maybank shed 7 sen to RM9.85, Public Bank dropped 3 sen to RM4.38, CIMB lost 6 sen to RM6.90, and IHH Healthcare erased 1 sen to RM6.90, while Tenaga Nasional was flat at RM14.
As for active stocks, Permaju dropped 1 sen to 2 sen, Sinaran Advance plunged 7 sen to 3 sen, SFP Tech fell 1.5 sen to 20.5 sen, Velesto eased 0.5 sen to 16.5 sen, while Tanco put on 1 sen to RM1.01.
On the index board, the FBM Emas Index lost 58.63 points to 11,397.06, the FBMT 100 Index dipped 58.34 points to 11,160.37, and the FBM ACE Index slid 24.47 points to 4,573.60.
The FBM Emas Shariah Index dropped 35.86 points to 11,354.12 and the FBM 70 Index shrank 80.05 points to 16,223.31.
Across the sectors, the financial services index tumbled 122.40 points to 18,048.68, the industrial products and services index inched down 0.30 of a point to 153.44, the energy index eased 7.25 points to 698.66, while the plantation index gained 41.27 points to 7,376.64.
The Main Market volume narrowed to 1.19 billion units valued at RM1.60 billion against yesterday’s 1.23 billion units valued at RM1.34 billion.
Warrants turnover slipped to 1.10 billion units worth RM134.59 million from 1.60 billion units worth RM198 million previously.
The ACE Market volume expanded to 351.78 million shares worth RM109.53 million from 278.81 million shares worth RM86.35 million yesterday.
Consumer products and services counters accounted for 287.32 million shares traded on the Main Market, industrial products and services (199.70 million), construction (180.42 million), technology (126.96 million), SPAC (nil), financial services (81.79 million), property (124.88 million), plantation (21.99 million), REITs (17.89 million), closed/fund (nil), energy (116.49 million), healthcare (38.17 million), telecommunications and media (44.55 million), transportation and logistics (16.94 million), utilities (41.41 million), and business trusts (20,000).