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
- Singapore's exports surged 38.4% in May, driven by robust AI-related electronics demand.
- Wall Street ended slightly lower as a sharp sell-off in semiconductor stocks offset gains in healthcare.
- Singapore's manufacturing growth remained strong but moderated from April, suggesting AI momentum is normalizing.
- Keppel's Indonesia legal dispute has progressed to the country's Supreme Court, adding uncertainty for investors.
- First REIT is seeking bondholder approval to provide greater financing flexibility ahead of planned asset divestments.
Market Overview
Singapore equities opened marginally higher on Monday, supported by resilient domestic economic data despite a mixed overnight performance on Wall Street. Investor sentiment remained cautious as weakness across global semiconductor stocks weighed on technology-related counters.
In the U.S., major indices closed slightly lower after AI chipmakers extended their recent pullback. The semiconductor sector came under heavy selling pressure, highlighting increased volatility following this year's AI-driven rally. However, gains in healthcare stocks helped cushion broader market losses.
AI Continues to Drive Singapore's Export Strength
Singapore's external trade remained exceptionally strong in May, with non-oil domestic exports (NODX) rising 38.4% year-on-year, supported by a remarkable 94.8% increase in electronics exports.
Demand for integrated circuits, PC-related products and data storage components continued to benefit from global AI infrastructure investment, reinforcing Singapore's position as a key technology manufacturing hub.
Meanwhile, factory output expanded 13% year-on-year, slower than April's revised 16.5% growth and below market expectations. Nevertheless, electronics production remained the primary growth engine, suggesting the sector continues to underpin manufacturing activity despite some moderation.
Stocks in Focus
Keppel remains under investor watch after disclosing that a land dispute involving one of its Indonesian subsidiaries has advanced to Indonesia's Supreme Court. Although a lower court previously dismissed the claim, the latest appeal introduces additional legal uncertainty.
First REIT announced a consent solicitation for holders of its 2027 guaranteed bonds. The proposed amendments would provide greater financial flexibility, including an option for early bond redemption and waivers related to planned asset disposals.
Investment Outlook
Singapore continues to benefit from the global AI investment cycle, with export and manufacturing data reinforcing the strength of its electronics sector. However, investors should monitor whether semiconductor volatility persists, as profit-taking in AI-related names could create near-term market swings despite healthy economic fundamentals.
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