The FBM KLCI has dropped more than 40 points year-to-date.
PETALING JAYA: The FBM KLCI extended its decline for a second consecutive day, as investor sentiment remained pressured by rising external risks, particularly weak economic growth in China and stronger-than-expected US economic data.
At 5pm, the FBM KLCI fell 14.02 points, or 0.86%, to 1,600.81 from Wednesday’s close of 1,614.83.
The index opened 3.34 points firmer at 1,618.17 and moved between 1,600.75 and 1,618.17 throughout the day.
Decliners trounced advancers 900 to 231 on the broader market, while 454 counters were unchanged, 785 untraded, and 10 others suspended.
Turnover narrowed to 3.49 billion units valued at RM2.93bil against Wednesday’s 3.59 billion units valued at RM3.06bil.
UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the combination of weak Chinese economic data, robust US economic performance, and uncertainty surrounding future US trade policies has created a challenging environment for investors.
The factors continued to dampen risk appetite, further contributing to the sustained decline in the FBM KLCI, which has dropped more than 40 points year-to-date. The broader economic outlook remains clouded by the external pressures.
Compounding these uncertainties, the US Federal Reserve’s (Fed) latest meeting minutes signalled “placeholder assumptions” regarding potential trade policy shifts under the Trump 2.0 administration.
“These assumptions suggest that the Fed is evaluating the possible economic impact of policies such as higher tariffs or changes to trade agreements.
“While elevated trade tariffs may be a priority for the new administration, they are likely to pose significant risks to growth,” he added. — Bernama
