KUALA LUMPUR, April 15 (Bernama) -- Bursa Malaysia erased early gains to end slightly lower on Wednesday, as profit-taking emerged in selected heavyweight counters mainly in financial services and utilities sectors. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 4.70 points, or 0.28 per cent, to 1,683.42 from Tuesday’s close of 1,688.12. The benchmark index opened 3.30 points higher at 1,691.42 and moved between 1,680.46 and 1,695.68 throughout the day. However, in the broader market, gainers outpaced losers 615 to 455, while 566 counters were unchanged, 1,057 untraded and 13 suspended. Turnover increased to 3.33 billion units worth RM3.02 billion from Tuesday’s 2.85 billion units worth RM2.67 billion.
Asian equities advanced on Wednesday as easing geopolitical tensions and falling oil prices boosted risk appetite, signaling a potential stabilisation in global markets after weeks of volatility.
Regional Stocks Rebound on Improved Sentiment
The MSCI Asia-Pacific Index rose 1.2%, with broad-based gains across the region.
- South Korea led the rally, with its benchmark surging 3.1%
- China’s CSI 300 Index recovered losses tied to the Iran conflict
- Markets in Taiwan and Singapore also erased earlier declines, reflecting improving investor confidence
The rebound suggests Asian markets are recovering from war-driven selloffs, as investors anticipate de-escalation.
Oil Prices Decline, Easing Inflation Concerns
Crude oil prices extended losses for a second session:
- Brent crude fell to around US$94.50 per barrel
- WTI crude dropped to about US$90.70 per barrel
The decline followed comments from Donald Trump indicating the conflict could be nearing resolution.
Lower oil prices are helping to ease inflation expectations, supporting both equities and bond markets.
Risk Appetite Returns, but Caution Remains
Investor sentiment improved as the US and Iran prepare for another round of talks, raising hopes of a diplomatic breakthrough.
However, analysts caution that the sustainability of the rally remains uncertain, given ongoing tensions and the continued naval blockade of the Strait of Hormuz.
Markets have shown increasing resilience, with investors becoming more accustomed to geopolitical volatility rather than reacting sharply.
Macro Risks Still in Focus
Despite the near-term optimism, global risks persist:
- The International Monetary Fund (IMF) has downgraded its growth outlook
- The International Energy Agency (IEA) warned that the conflict could halt global oil demand growth
- Supply chain disruptions and energy shocks continue to threaten economic momentum
Meanwhile, US economic data showed wholesale prices rising less than expected, offering some relief on inflation concerns.
Mixed Signals from Corporate Earnings
Corporate earnings reflected resilience amid uncertainty:
- BlackRock reported US$130 billion in inflows, highlighting continued investor engagement
- JPMorgan Chase shares declined despite strong trading revenue
- Citigroup gained on improved profitability
These results suggest corporate performance remains stable, even as macro risks persist.
Investor Takeaways
- Asian equities rebounded, supported by renewed US-Iran peace hopes and improving sentiment.
- Oil prices declined, easing inflation concerns and supporting risk assets.
- Markets are becoming more resilient to geopolitical shocks, though volatility remains.
- Global growth risks persist, with IMF downgrades and energy uncertainty still in play.
- Investors should monitor peace negotiations and oil price trends, which remain key market drivers.
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