BURSA MALAYSIA ENDS LOWER AMID US TENSIONS, CAUTIOUS MARKET

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, April 22 (Bernama) -- Bursa Malaysia ended lower on selling activities in the financial services and industrial products and services sectors’ heavyweights, amid tensions between US President Donald Trump and Federal Reserve chair Jerome Powell.

The tensions, coupled with global uncertainty, have sparked investors’ concern, prompting them to remain cautious.

CIMB gave up 11 sen to RM6.75, Hong Leong Bank slid 44 sen to RM19.54, and Press Metal Aluminium erased 10 sen to RM4.70. These counters dragged the composite index down by a combined 5.04 points. 

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 13.22 points or 0.88 per cent to 1,486.25 from Monday’s close of 1,499.47.

The benchmark index opened 7.03 points lower at 1,492.44 and moved between 1,482.70 and 1,492.44 during the early session.  

Market breadth was negative, with decliners outpacing gainers 631 to 302, while 397 counters were unchanged, 1,095 untraded and 30 suspended.

Turnover advanced to 3.43 billion units valued at RM1.66 billion against Monday’s 1.53 billion units valued at RM1.19 billion.   

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said market sentiment remains cautious globally after Trump lashed out at Powell, raising fears about political interference in monetary policy and dampening optimism over the US economy.

“Back home, we see today's profit-taking mainly on banks, construction and energy sectors’ heavyweights as an opportunity for bargain hunters given the cheaper valuations of the benchmark index.

“We foresee the FBM KLCI continuing to test the psychological barrier of 1,500 this week, anticipating it to trend within 1,470-1,500,” he told Bernama. 

Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the lower FBM KLCI close today reflected mounting global uncertainty amid renewed trade tensions under the new US administration.

“Investor sentiment remains subdued, weighed down by three interrelated concerns: the unclear trajectory of US trade policy, perceived threats to the Fed’s independence, and downward revisions to first-quarter 2025 corporate earnings,” he said. 

He said that over the weekend, risk appetite deteriorated further after Trump intensified his public criticism of Fed chair Powell, calling for immediate interest rate cuts. 

“Reflecting these concerns, all banking stocks within the FBM KLCI ended in negative territory today as investors feared that any politically driven move against Powell could destabilise US monetary policy and send shockwaves through global markets -- posing heightened risks to financial systems in emerging economies, which tend to be more vulnerable to external shocks,” he added. 

Among other heavyweights, YTL Power International slipped nine sen to RM3.17, YTL Corporation lost six sen to RM1.77, Public Bank edged down three sen to RM4.37, however, Maxis gained five sen to RM3.54 and Axiata added one sen to RM1.96.  

As for the actives, NexG rose one sen to 35.5 sen, Aumas inched up two sen to 80 sen, while Ingenieur Gudang trimmed half-a-sen to 3.5 sen, Tanco shaved 3.5 sen to 84.5 sen and My E.G. Services was two sen lower at 89 sen. 

-- BERNAMA