Losers outpace gainers as Bursa Malaysia extends pullback on US rate fears

KUALA LUMPUR, Sept 17 — Bursa Malaysia's main index, the FTSE Bursa Malaysia KLCI, saw a decline today amid heightened concerns over rising U.S. bond yields and potential further tightening by the Federal Reserve. The index closed 4.47 points lower, or 0.26 per cent, at 1,674.74 points, marking the second consecutive day of losses as market sentiment was weighed down by the volatile trading session.

The stock exchange had closed on Malaysia Day the previous day. Throughout the day, the benchmark index fluctuated between 1,670.75 and 1,684.92. Despite subdued market breadth, with more stocks falling than rising, turnover increased slightly to RM3.25 billion from the previous day's figure. Analyst Kenneth Leong from Berjaya Research Sdn Bhd maintained a cautious stance on the FBM KLCI, attributing the recent weakness to elevated U.S. Treasury yields and lingering doubts about the global interest rate outlook.

He noted that the index had formed a bearish candlestick pattern, indicating a continued pullback mode. Support levels were identified at 1,666 points and 1,655 points, while resistance levels were at 1,687 points and 1,700 points. Among the major counters, Maybank, Public Bank, and Tenaga Nasional remained unchanged, while CIMB and IHH Healthcare saw slight declines.

In the top gainers, Vitrox rose 48 sen to RM9.58, while Malaysian Pacific Industries and Nestle increased by 40 sen to RM40.10 and RM90.52, respectively. However, Hong Leong Bank, Petronas Chemicals, F&N, Hong Leong Financial, and Bursa Malaysia experienced notable declines.