SPI Asset Management managing partner Stephen Innes explained that the absence of a domestic trade deal has left the FTSE Bursa Malaysia KLCI (FBM KLCI) a bit out of sync with the global risk rally.
“But next week could bring a ray of light, especially if Malaysia secures a favourable trade agreement with the US or if US Treasury secretary Scott Bessent’s meeting with Chinese officials in Stockholm makes progress, either by extending tariff relief or building a stronger framework for cooperation,” he told Bernama.
Southeast Asian neighbours have sealed deals with the US for lower tariffs, of which Indonesia’s exports to the US will be subject to a 19% tariff. Whereas Vietnam will face a 20% tariff for general goods and a 40% tariff for goods transhipped through the country.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI closed lower in tandem with the regional sell-off.
“Markets across Asia ended lower as investors turned cautious, taking profits ahead of a significant week that includes the US tariff deadline set by President Donald Trump and multiple monetary policy decisions.
“Trump continued urging US Federal Reserve (Fed) chair Jerome Powell to ease monetary policy during an uncommon visit to the Fed, although he downplayed the possibility of firing Powell, a threat he has raised in the past,” he said.
Elsewhere, Hong Kong’s Hang Seng Index dropped 1.09% to close at 25,388.35, Singapore’s Straits Times Index eased 0.4% to 4,255.81, and Japan’s Nikkei 225 shed 0.88% to 41,456.23. However, South Korea’s Kospi gained 0.18% to 3,196.05.
At 5pm, the FBM KLCI shaved 6.56 points, or 0.43%, to close at 1,533.76, compared to yesterday’s close of 1,540.32.
The benchmark index opened 1.66 points lower at 1,538.66 and moved between 1,525.98 and 1,539.82 throughout the trading session.
In the broader market, losers led gainers 601 to 356, while 479 counters were unchanged and 1,090 untraded, with 44 suspended.
Turnover slipped further to 2.86 billion shares worth RM2.16 billion from 2.97 billion shares worth RM2.3 billion yesterday.
Of the heavyweight stocks, Maybank erased nine sen to RM9.54, Public Bank was down two sen to RM4.29, and Tenaga Nasional lost 34 sen to RM13.60. However, CIMB earned five sen to RM6.75, while IHH Healthcare, CelcomDigi and Press Metal bagged one sen each to RM6.66, RM3.84 and RM5.34.
Among the most active stocks, NexG advanced one sen to 52.5 sen, Focus Dynamics and Tanco were flat at one sen and 91.5 sen respectively, and Zetrix lost 0.5 sen to 91 sen.
Across the broader market, the FBM Emas Index dropped 44.35 points to 11,506.82, the FBMT 100 Index slipped 44.84 points to 11,269.72, and the FBM Emas Shariah Index declined 51.98 points to 11,528.98.
The FBM 70 Index eased 51.3 points to 16,607.57 while the FBM ACE Index shed 3.49 points to 4,639.02.
By sector, the financial services index fell 51.35 points to 17,454.23, the plantation index lost 35.17 points to 7,434.79 and the industrial products and services index was 1.02 points lower at 157.14.
The energy index, however, rose 1.17 points to 739.85.
The Main Market volume narrowed further to 1.26 billion units valued at RM1.85 billion from 1.37 billion units valued at RM1.96 billion.
Warrants turnover improved to 1.28 billion units worth RM218.03 million from 1.24 billion units worth RM207.5 million previously.
The ACE Market volume fell to 313.89 million units worth RM90.97 million from 362.14 million units worth RM131.9 million previously.
Consumer products and services counters accounted for 163.12 million shares traded on the Main Market; industrial products and services (213.56 million), construction (83.51 million), technology (255.81 million), SPAC (nil), financial services (50.41 million), property (159.15 million), plantation (8.76 million), REITs (25.5 million), closed-end fund (nil), energy (99.34 million), healthcare (51.9 million), telecommunications and media (57.85 million), transportation and logistics (49.49 million), utilities (45.23 million), and business trusts (26,700).