KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Malaysia Market Ends Lower Amid Regional Caution
Palm Oil Exports Drop 16.27% in February
Stocks to Watch: CAPITALA, TDM, OASIS
Wall Street in Turmoil: Recession Fears Shake Global Markets
US markets plunged as investors reacted to escalating trade tensions under President Trump’s administration. The S&P 500 dropped 2.7%, while the Nasdaq suffered its worst single-day loss since 2022, falling 4%.
President Trump acknowledged the economic uncertainties in a Fox News interview, stating, "There is a period of transition because what we’re doing is very big." Meanwhile, the Atlanta Fed now projects a 2.4% GDP contraction for Q1, signaling a potential recession risk.
Tech Stocks Take a Hit
The sell-off was particularly severe for the tech sector, with the so-called "Magnificent Seven" stocks leading the decline.
- Tesla fell 15.4%, the biggest drop among the group.
- Amazon, Apple, Meta, Microsoft, NVIDIA, and Alphabet also saw notable losses.
With investor sentiment at a low, markets remain volatile as trade policies continue to evolve.
Bursa Malaysia: Profit-Taking Drives KLCI Lower
The FTSE Bursa Malaysia KLCI closed down 0.7% at 1,536.46, weighed down by profit-taking and cautious regional sentiment.
All sectoral indices finished in negative territory, with declining stocks outnumbering advancers nearly three to one.
Top Bursa Gainers & Losers
- Top Gainer: YTL (4677.MY) +1.10%
- Top Loser: SIME (4197.MY) -3.26%
Commodities & Industry Updates
- Palm Oil Exports Declined – The Malaysian Palm Oil Board (MPOB) reported that palm oil exports fell 16.27% to 1 million tonnes in February 2025. Crude palm oil production dropped 4.16%, while total stocks dipped 4.31%.
- Direct Selling Industry Growth – Malaysia’s direct selling sector expanded 7.4% to RM34.4 billion in 2024, achieving the highest global market penetration rate at 2.28%, according to Deputy Minister Fuziah Salleh.
Stocks to Watch
CAPITALA (5099.MY) - PN17 Exit Plan
CEO Tony Fernandes aims to lift the company out of PN17 status by May 2025. Key steps include:
- Approval of its regularisation plan by Bursa Malaysia
- Shareholder EGM and High Court approval for capital reduction
TDM (2054.MY) - RM146 Million Hospital Expansion in Penang
TDM’s healthcare arm, KMI Healthcare, has partnered with Bertam Specialist Hospital to construct a 100-bed facility in Penang. The RM146 million project will operate under an 18-year lease, extendable for another 12 years.
OASIS (5265.MY) - Bursa Reprimands Over Rights Issue
Bursa Malaysia has publicly reprimanded OASIS and its adviser for mishandling a 2023 rights issue, citing violations of listing regulations.
Final Thoughts
With US recession fears impacting global markets, Malaysia’s stock market remains under pressure. Investors should monitor CAPITALA’s turnaround plan, TDM’s expansion, and commodity movements for potential opportunities.
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