BURSA MALAYSIA ENDS BROADLY LOWER AMID REGIONAL SELL-OFF, CI DOWN 2.56 PCT

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, March 9 (Bernama) -- Bursa Malaysia closed broadly lower today in line with widespread selling across regional markets as the intensifying conflict in the Middle East dampened investor sentiment and reignited concerns over global inflation. 

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 43.89 points, or 2.56 per cent, to close at 1,674.17 from last Friday’s close of 1,718.06. 

The benchmark index, which opened 18.93 points lower at 1,699.13, moved between 1,664.07 and 1,702.77 during the day. 

In the broader market, losers trounced gainers 1,141 to 283, while 308 counters were unchanged, 900 untraded, and 33 suspended.

Turnover expanded to 5.52 billion units worth RM5.87 billion from last Friday’s 3.71 billion units worth RM4.05 billion.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said with the war entering its second week and showing no signs of easing, fears have grown over potential disruptions to global oil supply.

“Brent crude oil price climbed above US$110 per barrel, one of the sharpest increases seen in recent years,” he told Bernama. 

Regionally, Singapore’s Straits Times Index fell 1.89 per cent to 4,756.61 points, Hong Kong’s Hang Seng Index slipped 1.35 per cent to 25,408.46, and South Korea’s KOSPI dropped 5.96 per cent to 5,251.87.

Japan’s Nikkei 225 lost over 2,800 points on Monday, marking the third largest point drop in history. It shrank 5.20 per cent to 52,728.72.

Back home, Thong said, the plantation sector has seen a notable re-rating after crude palm oil futures climbed above RM4,200 a tonne from the January-February average of around RM4,000 per tonne.

This is expected to expand profit margins for upstream players such as Kuala Lumpur Kepong Bhd, he added.

Meanwhile, the energy sector has also benefited from a “war premium” with strong buying interest in stocks such as Hibiscus Petroleum Bhd helping to cushion the index from heavier selling in the banking and consumer sectors, Thong said.

“Investors appear to be rotating into defensive commodity-related stocks, shifting away from high-growth sectors toward plantation and energy names that offer stronger earnings resilience,” he said. 

Thong said at present, 1,670 serves as the immediate support level and a break below this could see the market test the 1,640-1,650 region.

“Given the heightened volatility, we expect the FBM KLCI to trade within the 1,670-1,710 range throughout the week,” he added.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the current market weakness appears largely driven by external geopolitical developments rather than a deterioration in Malaysia’s domestic economic outlook.

“Nevertheless, the trajectory of oil prices and the evolution of the Middle East conflict will remain critical near-term catalysts for global markets.

“Should oil prices remain elevated for an extended period, the resulting inflationary pressures could weigh on global growth expectations and prolong financial market volatility,” he said. 

Mohd Sedek said in the interim, Bursa Malaysia is likely to continue trading in tandem with broader regional risk sentiment while investors closely monitor geopolitical developments and energy market dynamics.

Among Bursa Malaysia’s heavyweights, Maybank shrank 30 sen to RM11.46, Public Bank slid 13 sen to RM4.74, CIMB was 20 sen easier at RM7.77, Tenaga Nasional fell 36 sen to RM13.84, and IHH Healthcare declined 25 sen to RM8.65. 

On the most active list, Velesto Energy gained 1.0 sen to 34 sen and Hibiscus Petroleum put on 34 sen to RM2.39, while Capital A slipped 2.0 sen to 41 sen, AirAsia X erased 18 sen to RM1.10, Pharmaniaga was 2.0 sen lower at 24 sen, and Bumi Armada was flat at 35 sen. 

As for the top gainers, United Plantations rose RM1.42 to RM31.70, Kuala Lumpur Kepong added 22 sen to RM19.58, Batu Kawan advanced 24 sen to RM19.64, Hengyuan Refining Company climbed 21 sen to RM1.90, and Petra Energy went up 20.5 sen to 83.5 sen.

Of the top losers, Nestle was down RM3.20 to RM102.60, Fraser & Neave dropped RM1.30 to RM31.62, Malaysian Pacific Industries reduced RM1.06 to RM29.04, Dutch Lady Milk Industries edged down RM1.00 to RM31.00, and Hong Leong Financial sank 76 sen to RM20.10.

On the index board, the FBM Emas Index gave up 302.87 points to 12,224.49, the FBMT 100 Index weakened 303.14 points to 12,064.27, the FBM Emas Shariah Index lost 277.34 points to 11,929.46, the FBM 70 Index slid 361.30 points to 16,742.03, and the FBM ACE Index trimmed 193.30 points to 4,206.73.  

By sector, the Financial Services Index dropped 516.71 points to 20,271.34 and the Industrial Products and Services Index shaved off 5.82 points to 172.47, but the Energy Index increased 11.47 points to 806.74 and the Plantation Index jumped 191.57 points to 8,440.01.     

The Main Market volume surged to 3.74 billion units valued at RM5.55 billion from 2.50 billion units valued at RM3.80 billion last Friday.

Warrants turnover expanded to 1.30 billion units worth RM153.66 million from 881.10 million units worth RM110.71 million at the end of last week. 

The ACE Market volume improved to 480.45 million units valued at RM159.24 million from 326.47 million units valued at RM138.63 million previously.

Consumer products and services counters accounted for 714.41 million shares traded on the Main Market, industrial products and services (644.38 million), construction (221.80 million), technology (297.96 million), financial services (174.75 million), property (237.14 million), plantation (102.40 million), real estate investment trusts (42.25 million), closed-end fund (62,300), energy (944.69 million), healthcare (187.98 million), telecommunications and media (59.36 million), transportation and logistics (50.63 million), utilities (58.82 million), and business trusts (381,700).

-- BERNAMA