KUALA LUMPUR, Jan 28 (Bernama) -- Bursa Malaysia snapped its five-day winning streak to close lower on Wednesday, as investors took profit following a cumulative gain of 4.25 per cent over the past five sessions, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 14.76 points or 0.83 per cent to 1,756.49 from Tuesday’s close of 1,771.25. The market bellwether opened 1.46 points lower at 1,769.79, marking the day’s high, and hit a low of 1,750.05 during the mid-afternoon session. Market breadth was negative with losers trouncing gainers 876 to 384, while 525 counters were unchanged, 964 untraded and 94 suspended. Turnover improved to 3.65 billion units worth RM4.41 billion from Tuesday's 3.58 billion units worth RM4.46 billion.
US equities closed mixed, but headline strength hid meaningful internal rotation.
The S&P 500 Index closed at a record 6,978.60, lifted by semiconductors, cloud infrastructure and megacap tech. Meanwhile, the Dow Jones Industrial Average fell nearly 0.8%, dragged down by a collapse in managed-care stocks.
This was not a risk-on / risk-off day — it was a sector verdict day.
What Drove the Record Close
1. AI + Semiconductor Momentum Is Re-asserting Itself
Leadership came decisively from AI-linked compute and memory, reinforcing the idea that 2026 earnings expectations are being rewritten higher in this segment.
Key movers:
Micron Technology +5.4%
Intel +3.4%
Amazon +2.6%
Microsoft +2.2%
This confirms a market preference for AI enablers with visible revenue, not speculative narratives.
Notably, memory (MU) continues to outperform compute, suggesting investors see pricing power and supply tightnessas more durable than pure capex stories.
2. Nasdaq Strength ≠ Broad Market Strength
The Nasdaq Composite Index rose 0.9%, close to record levels — but market breadth was narrow.
This was a quality rally, not a participation rally:
Large-cap tech absorbed capital
Defensive cyclicals and healthcare were aggressively sold
That divergence matters for portfolio construction.
Healthcare Was the Real Shock
The day’s biggest damage came from US managed care:
UnitedHealth Group −19.6%
Humana −21.1%
CVS Health −14.2%
The catalyst: proposed Medicare Advantage reimbursement increases of just 0.09% for 2027.
Market message:
Healthcare is no longer a “defensive safe haven” if regulatory earnings visibility collapses.
This explains why the Dow — heavily weighted to UNH — diverged so sharply from the S&P 500.
Cross-Asset Signals Investors Should Not Ignore
Gold hit another intraday record, reinforcing geopolitical + policy hedging demand
Silver pulled back after extreme positioning — classic late-stage commodity behaviour
Crypto rebounded, but remains high-beta sentiment, not leadership capital
Importantly, equities and gold rising together suggests hedging, not euphoria.
Magnificent Seven: Still the Spine of the Market
Six of seven rose, led by Amazon and Microsoft.
Tesla was the lone laggard — reinforcing that AI > EV remains the dominant macro tech trade.
Key Takeaways for Investors
This is an earnings-driven rally, not a rate-cut rally
AI infrastructure and memory are still the market’s growth anchor
Healthcare policy risk is now systemic, not stock-specific
Index highs mask internal fragility — diversification matters
Bottom line
The S&P 500 may be at a record, but stock selection matters more than ever.
This is a market rewarding pricing power, earnings visibility and structural growth — while punishing regulatory uncertainty without mercy.
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