[MALAYSIA] Bursa Malaysia started Friday's trading session on a negative note, reflecting the losses experienced by Wall Street overnight. The global market sentiment was dampened by a significant downturn in the U.S. stock market, which saw the S&P 500, the Nasdaq, and the Dow Jones Industrial Average all drop. The S&P 500 lost 1.59%, closing at 5,861.57 points, while the Nasdaq plunged by 2.78%, ending at 18,544.42 points. Similarly, the Dow Jones fell by 0.45% to 43,239.50 points.
As a result of these declines, Bursa Malaysia’s benchmark index, the FBM KLCI, dropped 5.99 points, or 0.38%, to settle at 1,580.53 at 9:12 AM. It had opened lower, down by 6.56 points at 1,580.04 earlier in the morning.
Global Market Impact on Local Indices
The overnight slump in the U.S. markets, driven by global uncertainties and domestic economic concerns, weighed heavily on Bursa Malaysia. Inter-Pacific Research noted that the market might seek near-term stability, with the potential for a steadier finish to the week despite external pressures. "We think that further gains may become more difficult to attain as many market players will still be on a wait-and-see stance," the firm stated. The research house suggested that the FBM KLCI could stabilize within a range of 1,580 to 1,600 points.
Meanwhile, Rakuten Trade expressed its disappointment with the lack of sustained buying momentum in recent trading sessions. The firm anticipated that the index might undergo minor consolidation in the near term, hovering between 1,580 and 1,590 points.
Sector Performances on Bursa Malaysia
On Bursa Malaysia, several stocks faced notable declines. Among the most significant decliners was Nestle, which tumbled by RM2.60 to RM85.40. Other stocks such as Malaysian Pacific Industries, ViTrox, and Genting also suffered losses. Malaysian Pacific Industries saw a decrease of 36 sen, closing at RM18.54, while ViTrox fell by 29 sen to RM3.43. Genting, a prominent player in the hospitality and gaming sectors, lost 30 sen to RM3.43.
Despite these losses, some stocks bucked the trend. United Plantations gained 24 sen to RM23.08, and PETRONAS Gas added 16 sen to RM17.68. In addition, Negri Sembilan Oil Palms and RHB Bank also saw modest gains, up 15 sen to RM4 and 11 sen to RM6.87, respectively.
External Factors Weighing on Investor Sentiment
The drop in U.S. markets was influenced by several factors, including concerns over trade tensions and the global economic outlook. The confirmation of import tariffs on neighboring countries, as well as China, by U.S. President Donald Trump, added to market caution. The uncertainty surrounding these issues has kept investors on edge, with market players adopting a "wait-and-see" approach.
In Malaysia, the end of the financial reporting season also played a role in the cautious sentiment. With earnings reports largely behind, investors are now shifting their focus to other developments, including global trade issues and potential changes in government policies.
Technical Indicators for Bursa Malaysia
Looking at the technical indicators, Inter-Pacific Research suggested that the FBM KLCI might find support at the 1,580-1,583 levels. Should the index dip further, additional support is expected at the 1,575 level. On the upside, resistance levels are seen at 1,590 and 1,595 points. "We expect market players to continue to assess developments closely, and any major moves will depend largely on the resolution of global economic and trade concerns," the research firm stated.
Despite the current bearish sentiment, analysts remain optimistic about the long-term prospects of Bursa Malaysia, provided the market can navigate the ongoing external challenges. However, the near-term outlook remains clouded by global economic uncertainties.
The global market weakness, particularly the sharp declines on Wall Street, has had a noticeable impact on Bursa Malaysia, with the FBM KLCI opening lower and showing a tendency to consolidate. While some stocks have managed to rise, overall market sentiment remains cautious, reflecting the uncertainty in global trade and economic conditions. As the week progresses, investors will be closely monitoring developments on the international front, as well as domestic economic indicators, to gauge the potential for any recovery in the local market.
This caution is likely to persist until clearer signals emerge regarding global trade and the broader economic outlook. Until then, Bursa Malaysia may continue to experience some volatility, with investors carefully balancing risks and opportunities in this uncertain environment.
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