PETALING JAYA: Bursa Malaysia’s benchmark index ended the first trading day on a subdued note due to profit-taking activities following the year-end rally in the early part of the week and in line with most regional markets.
At 5pm, the FBM KLCI declined 9.46 points or 0.58% to 1,632.87 compared with Tuesday’s close of 1,642.33. The market was closed on Wednesday for the New Year holiday. The index had initially opened 1.01 points lower at 1,641.32 and moved between 1,629.23 and 1,641.32 throughout the day.
The broader market was negative, as decliners outpaced gainers 580 to 449, while 496 counters remained unchanged, 830 were untraded and 11 suspended.
Turnover rose to 2.64 billion units valued at RM1.97bil from Tuesday’s 2.41 billion units valued at RM2.06bil.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said amid geopolitical tensions, Asia’s risk-off atmosphere showcased traders’ cautious approach as they begin reallocating assets for 2025. He expects the benchmark index was unable to maintain the 1,635 support level, and anticipated further consolidation until new catalysts arise.
“As such, we anticipate the FBM KLCI to trend within the range of 1,625 to 1,635 towards the weekend,” he told Bernama.
SPI Asset Management managing partner Stephen Innes said the FBM KLCI kicked off the new year on a subdued note, dragged down by a slump in China’s stocks, reverberating across key exporters like Malaysia following a slowdown in manufacturing.
He added that the disappointing data dampened the previous uplift from last Friday’s better-than-expected readings in China’s construction and services Purchaser Managers Index.
“With the global trading atmosphere still relatively calm, as many major international investors have yet to return to the fray, the broader market is bracing for what could be the official start of trading activities around Jan 6, so the market is still susceptible to holiday-thinned trading conditions,” he said.
On key regional markets, Japan’s Nikkei 225 index was 0.96% lower to 39,894.54, China’s SSE Composite Index fell 2.66% to 3,262.56, Hong Kong’s Hang Seng Index eased 2.18% to 19,623.32 while Singapore’s Straits Times Index added 0.16% to 3,794.57.