Bursa Malaysia ends flat as US bond yields and West Asia tensions weigh

KUALA LUMPUR — The Bursa Malaysia index ended unchanged on September 25, 2023, as investors remained cautious amid rising US Treasury yields and tensions in the Middle East. The FTSE Bursa Malaysia KLCI (FBM KLCI) fell 0.69 points, or 0.04%, to 1,671.62, down from the previous close of 1,672.31. The benchmark index opened 2.56 points higher at 1,674.87 and fluctuated between 1,666.99 and 1,675.47 throughout the trading day.

Market breadth was nearly evenly divided, with 590 decliners pitted against 575 gainers. A total of 534 stocks remained unchanged, while 1,224 were either untraded or suspended. Turnover expanded to 4.07 billion units, valued at RM2.69 billion, from the previous 3.32 billion units worth RM2.74 billion. Kenneth Leong, head of research at Berjaya Research Sdn Bhd, stated that investors are maintaining a cautious stance due to ongoing geopolitical uncertainties, high US bond yields, and potential inflationary pressures that might curb near-term gains.

Leong further advised monitoring Malaysia's Producer Price Index (PPI) data on Monday for indications of sustained cost pressures, which could influence inflation expectations and domestic monetary policy. Looking ahead, investors will also closely watch the latest US GDP reading for Q2 2026 and its latest unemployment data. Among the top performers, Tenaga Nasional rose eight sen to RM13.14, while IHH Healthcare fell three sen to RM8.03.

Notably, Aimax saw the highest trading volume, slipping half a sen to 0.5 sen, while Zetrix AI remained unchanged at 19 sen. Among the top losers were Nestle, which decreased to RM90.20, United Plantations, which fell by 52 sen to RM32.58, and Petronas Dagangan, which slipped 50 sen to RM19.50.