Bursa slides more than 1pc at midday as oil, foreign selling hammer sentiment

Bursa Malaysia experienced a decline of over 1% at midday, mirroring regional market trends and fueled by persistent selling pressure and soaring oil prices, according to wire material from Oct 7. The FTSE Bursa Malaysia KLCI index closed 1.19% lower at 1,613.96, down from Tuesday's closing figure of 1,633.35. The benchmark index opened at 1,633.54 in the morning but saw a sharp drop to 1,612.42 by midday.

In the broader market, decliners outnumbered gainers by 580 to 401, with 512 counters remaining unchanged, 1,297 untraded, and 13 suspended. Trading volume was at 2.37 billion units, equating to RM1.7 billion. Hong Leong Investment Bank attributed the decline to a 0.5% rise in Brent crude oil to around US$101 per barrel, driven by Houthi missile and Iranian tanker attacks that outweighed an improvement in oil supply from Saudi Arabia and G7 reserves.

The bank noted that the focus of the week would be on third-quarter earnings, Federal Open Market Committee minutes, and preliminary October consumer sentiment. The US-Iran tensions and a hawkish Federal Reserve narrative could keep the FBM KLCI in a risk-off consolidation, amid high oil prices, surging bond yields, and persistent foreign outflows.

Meanwhile, the upcoming Melaka state election, scheduled for November 14, could add to political uncertainty, provide insights on voter sentiment, coalition dynamics, and seat negotiations, amid speculation of an early general election. Among the major stocks, Maybank and Public Bank decreased by two sen each to RM9.89 and RM4.59, while CIMB fell 38 sen to RM7.32.

Top Glove, Zetrix AI, and VS Industry also experienced a decline, while Mi Technovation, Batu Kawan, Malaysian Pacific Industries, Petronas Dagangan, and Critical Holdings emerged as top gainers.