The benchmark index remains well supported above the 1,630 level.
KUALA LUMPUR: Bursa Malaysia closed lower in tandem with the weak performance across the region following a negative cue from global equities overnight with strong selling In technology stocks, says an analyst.
At 5pm, the FBM KLCI slid 9.34 points, or 0.56%, to 1,632.63 compared with Tuesday’s close of 1,641.97.
The benchmark index, which opened 1.83 points higher at 1,643.80, marking its intraday high, slipped to a low of 1,629.81 later in the day.
The broader market was negative, with decliners thumping gainers 701 to 340, while 505 counters remained unchanged, 947 untraded, and eight suspended.
Turnover narrowed to 2.79 billion units worth RM3.16bil versus 2.87 billion units valued at RM2.77bil on Tuesday.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said many investors believed the selloffs such as in ASML Holding NV (ASML), Taiwan Semiconductor Manufacturing Company Ltd (TSMC) and Nvidia, which stoke the technology retreat, reflected growing scepticism around the artificial intelligence (AI) rally and signals deeper concerns for the global economy.
ASML, a leading supplier to major chipmakers such as TSMC, Intel, and Samsung, saw its share price plummet by 16% after issuing a disappointing sales forecast, significantly impacting the broader semiconductor sector.
As for the local bourse, Thong said the online equities broker maintained its cautious view on the market given the increasing volatility and uncertainty in the macro environment.
Nonetheless, the benchmark index remains well supported above the 1,630 level.
“Despite today’s sell-off, we believe it creates an attractive entry point for bargain hunters, given the robust economic fundamentals supporting the FBM KLCI’s long-term prospects.
“We hold our weekly target at 1,630 to 1,650,” Thong told Bernama.
Meanwhile, UOB Kay Hian Wealth Advisors head of Investment Research Mohd Sedek Jantan said that given Malaysia’s solid economic fundamentals, the recent decline may present a buying opportunity.
