Bursa Opens Lower Amid Concerns of Weakening US Economy
Market Tumbles as US Economy Fears Intensify
Kuala Lumpur: Bursa Malaysia continued its downward trend, opening lower on Tuesday, as Wall Street experienced a steep decline.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng attributed the drop to growing concerns about a weakening US economy, further fueled by US President Donald Trump’s hawkish remarks over the weekend.
Market Performance
At 9:10 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 13.67 points to 1,522.79 from yesterday’s close of 1,536.46. The benchmark index opened 10.45 points lower at 1,526.01.
Broader Market Trends
On the broader market, decliners outpaced advancers 548 to 53, with 199 counters unchanged, 1,574 untraded, and seven suspended. Turnover stood at 290.13 million shares worth RM167.47 million.
Expert Insights
Thong believes that the chance of more rate cuts may be in the offing to three times this year as the US 10-year yield slid to 4.219%. He anticipated a quick rebound from the previous session, but it did not materialize.
Domestic Front
Instead, the index faced continued pressure from persistent selling, closing around the 1,535 level, marking a fresh year-to-date low. This was further exacerbated by widespread regional weaknesses.
Heavyweights
Among heavyweights, Tenaga Nasional slid 14 sen to RM13.40, Public Bank declined four sen to RM4.51, Sunway was 12 sen weaker at RM4.45, and CIMB depreciated six sen to RM7.46, while Press Metal eased seven sen to RM4.95.
Actives
As for actives, Sapura and Velesto were flat at 3.5 sen and 15.5 sen respectively, Nationgate gave up seven sen to RM1.07, and MYEG went down 2.5 sen to 88 sen.
Index Performance
On the index board, the FBM Emas Index trimmed 130.77 points to 11,282.33, the FBMT 100 Index was 120.75 points lower to 11,077.08, the FBM Emas Shariah Index lost 150.23 points to 10,878.0, the FBM 70 Index dipped 258.41 points to 15,867.58, and the FBM ACE Index trimmed 70.06 points to 4,452.28.
Sector Performance
By sector, the Industrial Products and Services Index edged down 2.61 points to 151.04, the Energy Index shaved 14.96 points to 693.07, the Financial Services Index dwindled 131.72 points to 18,836.72, and the Plantation Index slipped 48.79 points to 7,369.92.
Conclusion
Bursa Malaysia’s downward trend continued, driven by concerns over a weakening US economy and hawkish remarks from US President Donald Trump. While the market may experience a quick rebound, investors should remain cautious and monitor the situation closely.
FAQs
Q: What is driving the decline in Bursa Malaysia?
A: Growing concerns about a weakening US economy and hawkish remarks from US President Donald Trump.
Q: How did the market perform?
A: The FTSE Bursa Malaysia KLCI (FBM KLCI) fell 13.67 points to 1,522.79, while decliners outpaced advancers 548 to 53.
Q: What are the implications for rate cuts?
A: The chance of more rate cuts may be in the offing to three times this year as the US 10-year yield slid to 4.219%.