UOB Kay Hian Wealth Advisors Sdn Bhd’s head of investment research Sedek Jantan said the market barometer traded within a narrow range for most of the day, hovering around 1,522, before a sharp uptick in the final 10 minutes pushed it to close at 1,524.50.
He said the financial services counters lagged earlier in the session, pressured by the widening divergence in monetary policy between Bank Negara Malaysia (BNM) and the US Federal Reserve (Fed).
“Earlier this month, BNM cut the overnight policy rate by 25 basis points to 2.75% and the Fed is widely expected to keep its benchmark rate unchanged at 4.33%.
“This growing policy gap has amplified the risk of capital outflows from interest rate–sensitive sectors, prompting foreign investors to reduce their positioning in Malaysian financials,” he told Bernama.
Sedek also noted that markets are beginning to price in increased volatility, with less than 48 hours remaining before the US tariff negotiation deadline and ahead of the federal open market committee’s (FOMC) decision later tonight.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said he expects investors to gradually re-enter the market, anticipating potential catalysts such as regional policy easing, progress in trade negotiations, and renewed interest in undervalued blue-chip stocks.
“We retain our weekly FBM KLCI target at between 1,510 and 1,540,” he said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) inched up 0.68 of-a-point, or 0.05%, to close at 1,524.50 from yesterday’s close of 1,523.82.
The benchmark index opened 0.28 of-a-point higher at 1,524.10 and hit a low of 1,516.96 during the morning session.
However, the broader market was negative, with losers outpacing gainers 570 to 377, while 508 counters were unchanged, 1,076 untraded and 89 suspended.
Turnover declined to 2.65 billion units worth RM2.07 billion from 3.36 billion shares worth RM2.18 billion yesterday.
Heavyweights Petronas Chemicals (PChem) rose 28 sen to RM4.07, Public Bank gained eight sen to RM4.29, and Hong Leong Bank was 26 sen higher at RM19.30, while CIMB slipped nine sen to RM6.55 and Maybank lost seven sen to RM9.45.
Tenaga Nasional fell four sen to RM13.28 and IHH Healthcare climbed three sen to RM6.63.
Of the most active counters, NexG and Zetrix AI were flat at 53 sen and 84.5 sen, respectively, Lotte Chemical Titan advanced four sen to 72 sen, while Tanco slid nine sen to 83.5 sen, and Pharmaniaga erased two sen to 16 sen.
Besides PChem, other top gainers were Chin Teck Plantations, which garnered 27 sen to RM9.76, Hong Leong Bank rose 26 sen to RM19.30, and Far East Holdings surged 20 sen to RM4.
Among the top losers, Nestle fell 40 sen to RM87.40, Fraser and Neave dipped 30 sen to RM28.60, and Allianz Malaysia slid 28 sen to RM17.42.
Across the broader market, the FBM Emas Index shaved 4.60 points to 11,435.53, the FBMT 100 Index shed 2.83 points to 11,198.70, and the FBM Emas Shariah Index lost 4.07 points to 11,474.02.
The FBM 70 Index sank 38.51 points to 16,489.70 and the FBM ACE Index fell 32.74 points to 4,593.88.
By sector, the industrial products and services index inched up 1.51 points to 160.89, the plantation index perked up 12.48 points to 7,407.51, while the financial services index slipped 11.61 points to 17,297.73 and the energy index eased 0.01 of-a-point to 743.71.
The Main Market volume declined to 1.26 billion units valued at RM1.81 billion from 1.48 billion units valued at RM1.87 billion on Tuesday.
Warrants turnover narrowed to 1.07 billion units worth RM160.12 million from 1.1 billion units worth RM183.9 million previously.
The ACE Market volume tumbled to 312.33 million units worth RM99.59 million from 772.91 million units worth RM121.4 million yesterday.
Consumer products and services counters accounted for 182.74 million shares traded on the Main Market; industrial products and services (245.5 million), construction (79.47 million), technology (244.64 million), SPAC (nil), financial services (81.78 million), property (141.15 million), plantation (20.77 million), REITs (34.39 million), closed-end fund (8,800), energy (70.35 million), healthcare (90.04 million), telecommunications and media (18.85 million), transportation and logistics (19.82 million), utilities (33.51 million), and business trusts (63,200).