KUALA LUMPUR, April 22 (Bernama) -- Bursa Malaysia snapped a four-day winning streak to close marginally lower today, as profit-taking followed mixed performances across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 4.94 points, or 0.29 per cent, to 1,710.39 from Tuesday’s close of 1,715.33. The benchmark index opened 2.67 points higher at 1,718.00, and moved between 1,705.11 and 1,720.46 during the day. In the broader market, losers led gainers 584 to 565, while 596 counters were unchanged, 1,014 untraded and 35 suspended. Turnover declined to 3.19 billion units valued at RM2.69 billion from 3.45 billion units valued at RM3.18 billion on Tuesday.
Asian equities retreated on Friday as investors turned cautious, locking in gains after a strong global rally while awaiting clearer signals on a potential US-Iran ceasefire extension.
Regional Stocks Slip After Multi-Day Rally
The MSCI Asia-Pacific Index fell 0.8%, snapping a three-day winning streak.
Key markets across the region also declined:
- Topix -1.1%
- Hang Seng Index -0.8%
- Shanghai Composite -0.2%
The pullback comes after a 10-day global rally that pushed equities to record highs, leaving markets vulnerable to short-term profit-taking.
Oil Prices Ease as Ceasefire Hopes Persist
Crude prices declined as optimism over diplomacy improved:
- Brent crude fell 1.1% to ~US$98 per barrel
- WTI crude dropped 1.6% to ~US$93 per barrel
The easing reflects expectations that a ceasefire could reopen the Strait of Hormuz, restoring oil flows and reducing inflation pressures.
Markets Pricing in Optimism, But Risks Remain
Investors are increasingly cautious that markets may be pricing in a ceasefire that is not yet confirmed.
Analysts warn that:
- Current rallies are based on diplomatic signals rather than concrete agreements
- Any disappointment could trigger sharp reversals in risk assets
This uncertainty is keeping market conviction low, particularly heading into the weekend when geopolitical developments often emerge.
Mixed Signals Across Asset Classes
Other asset classes reflected a cautious tone:
- Gold edged lower to around US$4,775, indicating reduced safe-haven demand
- US Treasury yields remained stable near 4.31%
- US dollar held steady after recent weakness
Meanwhile, Bitcoin slipped 0.7%, reflecting softer risk sentiment.
Global Markets at Critical Levels
Despite the pullback, global equities remain near record highs, supported by expectations of:
- Lower oil prices
- Improving economic outlook
However, policymakers caution that markets may be underestimating the economic impact of the conflict, particularly if disruptions persist.
Investor Takeaways
- Asian stocks declined as investors took profit, ending a strong rally.
- Markets are waiting for confirmation of a US-Iran ceasefire extension.
- Oil prices eased, supporting inflation outlook but reflecting uncertainty.
- Current market positioning may be overly optimistic, increasing downside risk.
- Investors should monitor weekend geopolitical developments, which could drive next moves.
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