Bursa Malaysia retreats sharply as bond yields, high oil prices hit sentiment

KUALA LUMPUR, Sept 29 — The Bursa Malaysia market plummeted sharply today, driven by surging bond yields and elevated oil prices, which collectively dampened risk sentiment. At 5pm, the FTSE Bursa Malaysia KLCI index slipped 26.06 points, or 1.56%, to 1,643.96, following an opening 5.91 points lower at 1,664.11. Throughout the trading session, the benchmark index oscillated between 1,643.36 and 1,665.32.

Market breadth was negative, with more decliners (688) outpacing gainers (412). A total of 548 counters remained unchanged, while 1,243 were untraded and 143 suspended. Turnover for the day reached 3.31 billion units, valued at RM2.95 billion, up from 3.11 billion units at RM2.40 billion the previous day. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng attributed the market's decline to the surge in Brent crude oil prices, which now hover around US$107 per barrel, adding to inflationary concerns.

Technology stocks remained under pressure due to uncertainty surrounding the pace of AI development. He cautioned that the market is expected to remain cautious, with trading conditions likely to stay volatile until clearer signs of stabilization emerge. The breach of the 1,656-point level indicates that selling pressure has not yet abated, although an oversold technical position might curb further downside.

The correction has created more attractive entry levels for fundamentally sound blue-chip stocks, offering investors opportunities to accumulate gradually on weakness. The market's decline was exacerbated by heavyweights, with banks such as Maybank, Public Bank, CIMB, RHB Bank, and AMMB all posting declines. Among other heavyweight stocks, Tenaga Nasional and IHH Healthcare also experienced losses.

Active trade saw Zetrix AI falling, while Jaks Resources, Land & General, MAG, and Ni Hsin were among the top gainers. The FBM Mid 70 Index, FBM Emas Index, FBM Top 100 Index, FBM Mid 70 Index, and FBM Emas Shariah Index all saw declines, while the FBM ACE Index saw a minor increase. Sector-wise, the Industrial Products and Services Index dipped, while the Energy Index rose.

The Main Market volume increased, while warrants turnover expanded. Consumer products and services counters accounted for the most shares traded on the Main Market, while other sectors like industrial products and services, construction, technology, financial services, property, plantation, real estate investment trusts, energy, healthcare, telecommunications and media, transportation and logistics, utilities, and business trusts also saw varying levels of activity.