KUALA LUMPUR, Sept 28 (Bernama) -- Bursa Malaysia ended marginally lower on Monday amid selling activity as the market lacked fresh catalysts to spur investors’ buying interest, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.60 points, or 0.09 per cent, to 1,670.02, from Friday’s close of 1,671.62. The benchmark index, which opened 0.93 of-a-point higher at 1,672.55, moved between 1,668.61 and 1,674.11 throughout the trading session. Market breadth was negative as losers surpassed gainers 748 to 388, while 517 counters were unchanged, 1,271 untraded and 91 suspended. Turnover slipped to 3.11 billion units worth RM2.40 billion from 4.07 billion units valued at RM2.69 billion on Friday.
Key Takeaways
- FBM KLCI slipped below its 2026 gains, pressured by renewed geopolitical concerns and regional market weakness.
- Foreign fund outflows and political uncertainty continue to cap market sentiment ahead of upcoming state elections.
- Higher oil prices and elevated US interest rate expectations could prolong market volatility.
- Analysts favour domestic, cash-generative companies, viewing market weakness as a selective buying opportunity.
Market Overview
Malaysian equities started the week on a weaker footing, with the FBM KLCI falling as much as 0.8% to 1,655.28, wiping out its gains for the year. The decline mirrored losses across major Asian markets as investors shifted their focus back to geopolitical tensions involving Iran and the broader Middle East.
Financial heavyweights led the pullback, with Public Bank declining 1.5%, contributing significantly to the benchmark index's weakest level since December 2025.
Geopolitical Risks Return to the Forefront
Although the US and Iran have signalled that they do not intend to escalate recent military actions further, markets remain cautious over the possibility of renewed disruptions in the region.
The uncertainty pushed Brent crude higher to around US$72.50 per barrel, reinforcing concerns that higher energy prices could fuel inflation and complicate the global interest rate outlook.
Meanwhile, investors are also preparing for a busy macroeconomic week, with US labour market data and remarks from Federal Reserve Chair Kevin Warsh expected to provide fresh guidance on monetary policy.
Domestic Headwinds Continue
Beyond global risks, local sentiment remains constrained by persistent foreign selling, a lack of near-term market catalysts and rising political uncertainty ahead of the Johor and Negeri Sembilan state elections.
Market strategists also noted that the KLCI's technical indicators have weakened, suggesting that investor confidence remains fragile until clearer catalysts emerge.
Investment Outlook
While short-term volatility is likely to persist, analysts believe periods of weakness may present opportunities for long-term investors. Companies with strong domestic earnings, healthy cash flows and limited exposure to global technology cycles could offer greater resilience if geopolitical tensions and higher global interest rates continue to weigh on market sentiment.
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