Market Daily Report: Bursa Malaysia Closes Lower Amid Foreign Outflow, Heightened Middle East Tensions

KUALA LUMPUR, June 17 (Bernama) -- Bursa Malaysia closed lower on Tuesday amid foreign fund outflows as investors weighed the escalating Israel-Iran tensions, analysts said. 

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 8.35 points, or 0.54 per cent, to 1,511.64 from Monday’s close of 1,519.99.

The benchmark index opened 1.17 points lower at 1,518.82 and fluctuated between 1,510.92 and 1,520.89 throughout the trading session. 

Market breadth was negative, with 538 decliners outpacing 353 gainers, while 494 counters were unchanged, 1,031 untraded and 22 suspended.

Turnover expanded to 3.03 billion units worth RM1.92 billion compared with Monday’s 2.83 billion units valued at RM2.04 billion.  

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said key regional indices ended mixed as investors remained concern over geopolitical tensions in the Middle East.

Meanwhile, he said the US Federal Reserve (Fed) is widely expected to keep rates unchanged on Wednesday, with attention shifting to the guidance Fed Chair Jerome Powell provides on the timing of future interest rate cuts.

“Domestically, we maintain a cautious approach amid ongoing macroeconomic uncertainties, acknowledging that investor sentiment may remain volatile,” he told Bernama.

Amid trade-related volatility, the online equities broker advised investors to focus on sectors with strong domestic fundamentals, such as utilities, real estate, and financial services.

“We anticipate the FBM KLCI to trend within the range of 1,500-1,530 for the week, representing its support and resistance levels,” Thong added. 

UOB Kay Hian Wealth Advisors Sdn Bhd’s head of investment research Mohd Sedek Jantan meanwhile said investors weighed the escalating Israel-Iran tensions, following US President Donald Trump’s call for the immediate evacuation of Tehran.

The renewed geopolitical volatility has once again positioned the Middle East as a central axis of global market unease.

Equities retreated on mounting concerns that an intensification of military conflict in the region could disrupt oil supply chains, thereby heightening global inflationary pressures.

Nonetheless, on the economic front, China delivered a stronger-than-expected set of macro data, which helped ease broader concerns over trade policy uncertainty.

“Retail sales rose 6.4 per cent year-on-year in May, beating expectations of a 4.9 per cent increase, while the unemployment rate edged lower to 5.0 per cent from 5.1 per cent in the previous month—pointing to a more resilient domestic economy despite external headwinds,” said Mohd Sedek. 

Among the heavyweights, Maybank slid 4.0 sen to RM9.55, Tenaga fell 6.0 sen to RM14.30, Public Bank eased 1.0 sen to RM4.22, CIMB shed 9.0 sen to RM6.66, and IHH Healthcare slipped 2.0 sen to RM6.89.

As for the most active stocks, Borneo Oil was flat at 1.0 sen, Top Glove edged down 4.0 sen to 71.5 sen, Velesto Energy dipped half-a-sen to 18.5 sen, while Tanco added 2.0 sen to 97.5 sen and YTL Corp was flat at RM2.15.

On the index board, the FBM Emas Index slid 57.51 points to 11,303.28 and the FBMT 100 Index declined 55.81 points to 11,082.54.

The FBM Emas Shariah Index fell 55.29 points to 11,318.37, the FBM ACE Index shrank 28.84 points to 4,442.97, and the FBM 70 Index decreased 60.46 points to 16,223.00.

Sector-wise, the Plantation Index tumbled 99.53 points to 7,250.74 and the Energy Index dipped 13.39 points to 738.77.

The Financial Services Index plummeted 104.43 points to 17,396.56 and the Industrial Products and Services Index slipped by 0.98 of-a-point to 150.15.

The Main Market volume narrowed to 1.19 billion units valued at RM1.61 billion from 1.25 billion units worth RM1.80 billion registered at Monday’s close.

Warrants turnover expanded to 1.62 billion units worth RM245.78 million versus 1.35 billion units valued at RM171.62 million previously. 

The ACE Market volume declined to 210.30 million units valued at RM71.29 million against 228.89 million units worth RM74.30 million yesterday.

Consumer products and services counters accounted for 188.54 million shares traded on the Main Market, industrial products and services (195.14 million), construction (88.59 million), technology (123.68 million), SPAC (nil), financial services (70.50 million), property (133.44 million), plantation (15.77 million), REITs (20.46 million), closed end fund (300), energy (139.17 million), healthcare (119.06 million), telecommunications and media (28.46 million), transportation and logistics (25.18 million), utilities (45.00 million), and business trusts (600).

Source: Bernama