The FTSE Bursa Malaysia KLCI (FBM KLCI) ended lower on Wednesday, reversing gains from the previous day, as investors engaged in profit-taking amid weak regional market sentiment.
By the close of trading, the FBM KLCI dropped 14.96 points (0.92%) to settle at its intraday low of 1,614.83, down from 1,629.79 on Tuesday. The benchmark index opened slightly weaker at 1,628.92 and touched an intraday high of 1,631.15 during early trade.
Market breadth reflected bearish sentiment, with 827 decliners outpacing 285 advancers, while 497 counters remained unchanged. Trading volume stood at 3.59 billion shares valued at RM3.06 billion, a decrease from Tuesday’s 3.91 billion shares worth RM3.29 billion.
Factors Behind the Decline
UOB Kay Hian Wealth Advisors’ head of investment research, Mohd Sedek Jantan, attributed the decline to negative cues from Wall Street, triggered by a broad-based selloff in US Treasuries. Investors remained cautious ahead of key US employment data and uncertainties surrounding President Donald Trump’s upcoming inauguration, which raised questions about potential policy shifts, including tariffs.
“Persistent geopolitical risks, economic challenges in China, a weakened yuan, and major central bank actions also weighed on investor sentiment,” Mohd Sedek added.
Limited Gains Amid Broader Weakness
Domestically, only two FBM KLCI components posted gains, with the majority seeing losses. However, stocks related to the Johor-Singapore Special Economic Zone saw some buying interest after the recent agreement signing.
Rakuten Trade Sdn Bhd’s equity research vice-president, Thong Pak Leng, expects the FBM KLCI to remain range-bound between 1,615 and 1,635 for the rest of the week.
Sectoral and Stock Performance
The industrial, energy, financial services, and plantation indices were under pressure, reflecting weak sentiment across all sectors. Notably:
- Petronas Gas added 6 sen to RM17.82.
- YTL Power rose 1 sen to RM4.51.
- Gamuda and MRDIY saw declines of 1 sen and 3 sen, respectively.
Among active counters, ACE Market debutant Swift Energy gained 11.5 sen to 39.5 sen, while UEM Sunrise added 4 sen to RM1.14. In contrast, Dagang NeXchange and Bumi Armada each lost 1 sen.
Broader Market Performance
Indices across the board registered declines:
- FBM Emas Index: Down 116.50 points to 12,430.34
- FBM Emas Shariah Index: Down 126.85 points to 12,427.03
- FBMT 100 Index: Down 113.54 points to 12,105.57
The Main Market saw reduced volume, while the ACE Market witnessed increased activity, reflecting mixed investor focus across market segments.