KUALA LUMPUR, April 14 (Bernama) -- Bursa Malaysia ended Tuesday’s trading session higher, in line with gains across regional markets, as sentiment improved on expectations of potential peace talks between the United States (US) and Iran. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.60 points, or 0.45 per cent, to 1,688.12 from Monday’s close of 1,680.52. The benchmark index opened 10.44 points higher at 1,690.96 moved between 1,686.06 and 1,694.16 throughout the day. In the broader market, gainers outpaced losers 663 to 455, while 537 counters were unchanged, 1,061 untraded and 12 suspended. Turnover eased to 2.85 billion units worth RM2.67 billion from Monday’s 2.94 billion units worth RM2.64 billion.
Singapore equities opened lower on Monday as markets reacted to a sharp escalation in geopolitical tensions following a US naval blockade of the Strait of Hormuz.
STI Dips Amid Rising Geopolitical Risks
The FTSE Singapore Straits Time Index fell 0.34% to 4,972.32, reflecting cautious sentiment across the market.
- Decliners outpaced advancers 160 to 79
- Trading volume: 143.8 million shares (S$214 million)
The decline comes as investors reassess risks after a breakdown in US-Iran negotiations.
Trump Declares Hormuz Blockade
Donald Trump announced that the US Navy would blockade all ships entering or leaving the Strait of Hormuz, a critical artery for global energy supply.
The move significantly raises concerns over:
- Global oil supply disruptions
- Rising energy prices
- Inflation pressures across economies
Markets are increasingly pricing in prolonged geopolitical tension and supply shocks.
Wall Street Mixed as AI Stocks Outperform
US markets ended mixed ahead of the escalation:
- Dow Jones Industrial Average and S&P 500 Index edged lower
- Nasdaq Composite Index rose, driven by AI-related stocks
Key gainers included:
- NVIDIA (NVDA.US) +2.6%
- Advanced Micro Devices (AMD.US) +3.6%
- Broadcom (AVGO.US) +4.7%
This highlights a continued divergence between tech and broader market performance.
Inflation Pressures Build
US inflation data showed CPI rising to 3.3% YoY, a 23-month high, driven largely by energy price increases linked to the conflict.
In Singapore, a S$1 billion support package aims to cushion rising costs, but analysts note it will:
- Mitigate rather than eliminate inflation pressures
- Allow energy prices to pass through the economy
- Preserve market price signals
Stocks to Watch
Katrina Group
Auditors flagged going concern risks, citing liabilities exceeding assets and continued losses.
CapitaLand Investment
Closed a US$600 million regional credit fund, expanding exposure to Asia-Pacific real estate debt markets.
Investor Takeaways
- Singapore stocks declined, reflecting heightened geopolitical risk after the Hormuz blockade.
- The blockade raises concerns over oil supply disruptions and inflation spikes.
- US markets remain mixed, with AI stocks outperforming broader indices.
- Government support measures will soften but not eliminate cost pressures.
- Markets are likely to remain volatile and driven by geopolitical developments.
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