KUALA LUMPUR, March 19 (Bernama) -- Bursa Malaysia ended lower today due to late selling in selected heavyweights, particularly in the healthcare, utilities and financial services sectors and was also in sync with regional market weakness. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 9.10 points or 0.53 per cent to 1,720.71 from yesterday’s close of 1,729.81. The market bellwether opened 6.52 points lower at 1,723.29, and fluctuated between 1,719.93 and 1,737.12 throughout the day. Market breadth was negative with losers beating gainers 707 to 442. A total of 486 counters were unchanged, 1,131 untraded and 11 suspended. Turnover increased to 3.36 billion units worth RM4.96 billion from yesterday’s 3.33 billion units worth RM4.27 billion.
US equities declined sharply as surging oil prices and persistent inflation concerns weighed on investor sentiment, following the Federal Reserve’s decision to hold interest rates steady.
Major Indices Fall Amid Inflation Fears
Wall Street closed lower across the board:
Dow Jones Industrial Average fell 1.6%
S&P 500 Index dropped 1.4%
Nasdaq Composite Index declined 1.5%
The selloff was driven by a combination of rising energy prices and a hawkish Fed outlook, which reinforced expectations of higher-for-longer interest rates.
Oil Surge Fuels Market Volatility
Energy markets spiked following renewed attacks on Middle East oil infrastructure.
Brent crude jumped 5.4% to US$108.96
WTI crude rose 1.8% to US$97.98
Higher oil prices are raising concerns about inflation persistence, particularly as supply disruptions threaten global energy flows.
Fed Signals Prolonged Inflation Risks
The Federal Reserve maintained its benchmark rate at 3.5%–3.75%, but its projections suggest inflation may not return to the 2% target until 2028.
Recent data reinforced these concerns, with the Producer Price Index (PPI) rising 0.7% in February, more than double expectations.
This backdrop has led investors to scale back expectations for rate cuts, increasing pressure on equities.
Big Tech and Consumer Stocks Lead Declines
The selloff was broad-based, with major tech and consumer names under pressure:
Amazon (-2.5%)
Microsoft (-1.9%)
Apple (-1.7%)
Tesla (-1.6%)
Meta Platforms (-1.1%)
Alphabet (-1.0%)
NVIDIA (-0.8%)
Consumer names like McDonald's and Procter & Gamble also fell over 3%, reflecting concerns about cost pressures and demand outlook.
Crypto and Growth Stocks Under Pressure
Cryptocurrencies declined as rising rates reduce liquidity:
Bitcoin fell 5.1%
Ethereum dropped 6.7%
Solana declined 5.8%
Crypto-linked equities such as Coinbase and Robinhood also moved lower.
Sector Highlights: Energy Gains, Tech Weakness
While most sectors declined, energy stocks outperformed, supported by higher oil prices.
Meanwhile, select high-beta names saw sharp moves:
Rocket Lab fell 11.6% after announcing a US$1 billion share sale
Swarmer surged 77%, extending gains after its IPO
Investor Takeaways
US equities fell as oil prices surged and inflation concerns intensified.
The Fed signalled inflation may remain elevated until 2028, limiting rate cut expectations.
Big Tech and consumer stocks led declines, reflecting sensitivity to rates and costs.
Cryptocurrencies dropped sharply, pressured by tighter monetary conditions.
Energy stocks outperformed, benefiting from higher crude prices.
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