KUALA LUMPUR, June 30 (Bernama) -- Bursa Malaysia ended the first half of the 2026 trading year on a softer note, following a range-bound trading session as investors remained cautious amid the lack of fresh domestic catalysts. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said regional equities finished broadly higher, supported by stronger-than-expected business activity data from China and continued strength in technology stocks. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.85 points to 1,664.06 from Monday’s close of 1,665.91. The index opened 1.37 points higher at 1,667.28 and fluctuated between an intraday low of 1,661.80 and a high of 1,669.88 throughout the day. Market breadth was positive, with gainers outnumbering decliners 562 to 415, while 589 counters were unchanged, 1,124 untraded, and 79 suspended.
Asian markets weakened on Feb 4 after a tech-led selloff on Wall Street reignited worries that AI could squeeze software profitability, prompting a rotation into more cyclical sectors.
What Happened
Regional equities fell: MSCI’s Asia gauge slid up to 0.6%, with Japan and Hong Kong leading declines.
Tech pressure spread: Losses followed a sharp drop in US software shares after AI startup Anthropic rolled out a productivity tool for in-house lawyers, raising disruption fears.
Guidance disappointment: Advanced Micro Devices added to the gloom with a soft sales outlook.
Market Color
A Goldman Sachs basket of US software stocks sank 6%, the biggest one-day fall since April’s tariff shock.
The Nasdaq 100 dropped 1.6%, though most S&P 500 stocks actually rose, highlighting rotation beneath the surface.
Investors are increasingly betting the AI-led rally gives way to broader market participation, with value beating growth in 2026.
“Markets are churning underneath the surface as worries over AI capex battle hopes of a broadening US recovery,” said Wolfe Research strategist Chris Senyek.
Other Assets
Oil rose after the US Navy shot down an Iranian drone; Brent pushed above US$68/bbl.
Crypto stayed volatile: Bitcoin briefly hit its lowest level of 2025 before stabilizing.
Gold rebounded ~1.3% to around US$5,013/oz as metals steadied.
Notable Movers
Super Micro Computer signaled strong AI-data-center demand with an upbeat quarter forecast.
FedEx extended a record rally, and Walmart topped US$1 trillion in market cap—evidence of rotation into economically sensitive names.
Bottom Line
The session underscored a clear shift away from crowded tech trades toward cyclicals, even as AI winners still emerge. Near term, earnings guidance and AI monetization clarity will decide whether tech stabilizes—or the rotation deepens.
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