KUALA LUMPUR, May 8 (Bernama) -- Bursa Malaysia snapped a five-day rally to close lower on Friday on profit-taking and in line with weaker global markets as renewed military developments between the United States and Iran hurt risk appetite, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 10.79 points, or 0.61 per cent, to its intraday low of 1,748.06 from Thursday’s close of 1,758.85. The benchmark index, which opened 0.78 of-a-point lower at 1,758.07, moved to its intraday high of 1,760.19 in early trade before succumbing to selling pressure in late trading. Market breadth was negative with losers beating gainers 708 to 451. A total of 586 counters were unchanged, 907 untraded, and nine suspended. Turnover eased to 3.31 billion units worth RM3.00 billion compared with 3.78 billion units worth RM4.24 billion yesterday.
Global markets turned cautious again as escalating tensions in the Middle East reversed recent risk-on sentiment, pushing oil prices higher and dragging US equity futures lower.
US Futures Slip as Risk Appetite Fades
Contracts on major US indices declined in early trading:
- S&P 500 futures -0.2%
- Nasdaq 100 futures -0.3%
The pullback follows record highs in US equities earlier this week, highlighting how quickly geopolitical shocks can shift market direction.
Oil Prices Rise on Supply Disruption Fears
Crude oil prices moved higher after reports of:
- Explosions near a key Iranian port
- Attacks on US naval vessels in the Strait of Hormuz
West Texas Intermediate crude extended gains, reflecting concerns that energy supply routes could be disrupted.
The Strait of Hormuz remains a critical global oil chokepoint, making it highly sensitive to geopolitical developments.
Dollar and Yields Strengthen on Safe-Haven Demand
The US dollar strengthened, while 10-year Treasury yields rose, signaling a shift toward defensive positioning.
- Yield increased by 4 basis points
- Investors rotated into safe-haven assets amid uncertainty
Geopolitical Uncertainty Clouds Market Outlook
Markets are closely watching developments around:
- Potential reopening of the Strait of Hormuz
- US-led initiatives such as “Project Freedom” to secure shipping routes
- Ongoing military exchanges between US and Iran
Analysts warn that markets may remain highly volatile, driven by unpredictable headlines rather than fundamentals.
Trade Policy Adds to Uncertainty
In a separate development, a US federal court ruled that Trump’s 10% global tariffs were unlawful, adding another layer of uncertainty to the administration’s economic agenda.
This could have implications for global trade flows and corporate sentiment.
Economic Data Remains Supportive
Despite geopolitical risks, US economic data shows resilience:
- Jobless claims remain low, indicating a stable labour market
- Upcoming payroll data expected to show continued job growth
This suggests the underlying economy remains relatively strong, even as external risks rise.
Investor Takeaways
- US stock futures declined as geopolitical tensions triggered risk aversion.
- Oil prices are rising, driven by concerns over supply disruptions in the Middle East.
- Investors are shifting toward safe-haven assets, boosting the dollar and bond yields.
- Markets are likely to remain headline-driven and volatile in the near term.
- Strong economic data provides some support, but geopolitical risks dominate sentiment.
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