Bursa Malaysia Slides As US Inflation Data Strengthens Fed Rate-hold Outlook

KUALA LUMPUR, Feb 13 (Bernama) -- Bursa Malaysia ended with notable declines as the latest United States inflation data strengthened expectations that the Federal Reserve (Fed) would maintain interest rates.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) sank 10.77 points to 1,592.28 compared to yesterday’s close of 1,603.05.

The market barometer opened 1.07 points lower at 1,601.98 and moved between 1,592.20 and 1,605.48.

Decliners outpaced gainers 573 to 422 while 478 counters were unchanged, 845 untraded and 23 suspended.

Turnover narrowed sharply to 2.56 billion units worth RM2.22 billion from 3.15 billion units worth RM2.66 billion on Wednesday. 

The United States January Consumer Price Index (CPI) rose by 0.5 per cent, marking the largest increase since August 2023, while core CPI climbed 0.4 per cent.

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said although market consensus had already factored in the likelihood of the Fed maintaining interest rates, these figures have reinforced that expectation.  

Additionally, with President Donald Trump expected to announce reciprocal tariffs later today, escalating trade tensions could disrupt supply chains and impact export-driven sectors, adding to market uncertainty.

However, he noted that some regional markets showed signs of a rebound as Trump agreed to initiate negotiations with Russian President Vladimir Putin to bring an end to the war in Ukraine.

“This development signalled a significant shift in US foreign policy and raised hopes for de-escalation, thereby improving risk sentiment in the markets,” Mohd Sedek said.

Rakuten Trade Sdn Bhd's vice president of equity research Thong Pak Leng said that despite today's decline, foreign funds will flow back into the region due to stronger economic growth compared with the Western bloc. 

Malaysia is expected to release the 2024 economic data tomorrow, which is expected to be higher than the advance estimate of 5.1 per cent.

The growth is forecasted to be driven by the 4.8 per cent growth in the fourth quarter. 

Banking heavyweights topped the list of laggards, with CIMB losing 12 sen to RM8.28, while Maybank dropped eight sen to RM10.52 and Public Bank weakened five sen to RM4.45.

SD Guthrie slid 11 sen to RM4.87 and CelcomDigi reduced six sen to RM3.87.

Among the active counters, Ingenieur Gudang and Aizo were unchanged at 5.5 sen and 12 sen, respectively.

RGB International added 2.5 sen to 46 sen, IJM Corp gave up eight sen to RM2.31 and Harvest Miracle fell 1.5 sen to 14.5 sen.

On the index board, the FBM Emas Index shed 64.98 points to 12,127.14, the FBMT 100 Index lost 65.99 points to 11,829.37 and the FBM Emas Shariah Index dropped 44.91 points to 11,933.09.

The FBM 70 Index dropped 44.94 points to 17,935.35 and the FBM ACE Index improved 1.93 points to 5,219.24.

Sector-wise, the Financial Services Index shrank 189.16 points to 19,245.24, the Plantation Index was 34.89 points weaker at 7,481.65 and the Industrial Products and Services Index edged down 0.10 of-a-point to 164.17.

The Energy Index recovered 0.09 of-a-point to 818.36.

The Main Market volume depreciated to 1.27 billion units worth RM1.93 billion from 1.79 billion units worth RM2.39 billion on Wednesday.

Warrants turnover increased to 939.34 million units worth RM109 million against 870.64 million units worth RM101.43 million previously.

The ACE Market volume dwindled to 348.98 million units valued at RM129.70 million versus 487.90 million units valued at RM173.12 million yesterday.

Consumer products and services counters accounted for 227.69 million shares traded on the Main Market, industrial products and services (280.48 million), construction (123.36 million), technology (141.40 million), SPAC (nil), financial services (68.86 million), property (134.88 million), plantation (20.02 million), REITs (15.74 million), closed/fund (6,500), energy (112.08 million), healthcare (64.67 million), telecommunications and media (26.94 million), transportation and logistics (16.52 million), utilities (39.86 million), and business trusts (22,300).

-- BERNAMA