Bursa Malaysia closes lower

KUALA LUMPUR: Bursa Malaysia closed lower yesterday, reflecting selling pressure across the region amid concerns about the U.S. Federal Reserve’s (Fed) monetary policy easing, with the main index falling by 1.24 percent.

According to Bernama, at 5 p.m. yesterday, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 20.55 points to 1,639.80 from the previous closing level of 1,660.35.

The main index opened lower, dropping 6.78 points to 1,653.57, and subsequently fluctuated between 1,638.90 and 1,654.38 throughout the trading session.

Overall market performance was negative, with losing counters outnumbering gainers at 825 versus 283, while 432 counters remained unchanged, 926 were not traded, and six others were suspended.

Total trading volume fell to 2.96 billion units valued at RM3.33 billion, compared to 3.05 billion units valued at RM3.78 billion.

UOB Kay Hian Wealth Advisors’ Chief Investment Officer, Mohd Sedek Jantan, said that the FBM KLCI reflected regional trends despite positive performance on Wall Street as investors took profits while awaiting clearer market direction.

“Investor sentiment remains cautious due to various factors. The 90-minute debate this morning between (U.S. presidential candidate) Donald Trump and Kamala Harris ended without a clear winner, unlike Joe Biden’s previous debate loss to Trump, which caused market uncertainty,” he told Bernama.

He noted that U.S. Consumer Price Index (CPI) data scheduled to be released later today will be a key focus.

“Based on previous inflation data and August economic indicators, the overall CPI is expected to rise by 0.2 percent month-on-month, in line with July’s increase. However, the year-on-year CPI is projected to decrease to 2.6 percent, down from 2.9 percent in July.

“These inflation figures are important as they will influence the Fed’s decision regarding a potential interest rate cut next week, with current market expectations leaning towards a 25 basis point reduction,” he said.

Mohd Sedek added that despite the current cautious sentiment, the risk of a decline is limited due to Malaysia’s resilient domestic economy, stable corporate earnings, strong foreign investment, political stability, and potential changes in U.S. Fed policies, along with the strengthening ringgit and increased risk appetite among foreign investors.