Bursa Malaysia slides as US tech sell-off weighs on investor sentiment

Bursa Malaysia's main index fell in early trading on Oct 19 as a result of the recent sell-off in US technology stocks. The FTSE Bursa Malaysia KLCI dropped 8.42 points, or 0.52%, to 1,599.34 from the previous close of 1,607.76. At 9:15am, the index opened 3.58 points lower at 1,604.18. In the broader market, decliners outnumbered advancers by 423 to 103, with 270 counters unchanged, 2,048 untraded, and 34 suspended.

Trading volume reached 247.52 million units, valued at RM165.34 million. Apex Securities Bhd predicts the FBM KLCI to remain cautious in the short term due to continued foreign selling and global uncertainties. The recent decline in US tech and AI-related stocks, combined with high oil prices and inflation, may further depress market risk appetite before the US Federal Reserve's policy meeting on Oct 29.

Domestically, investors will continue to monitor Malaysia's economic performance following a 5.3% third-quarter 2026 GDP growth increase and the potential effects of increased operating costs on corporate earnings, especially for labour-intensive companies. The brokerage believes a full recovery will rely on increased foreign fund inflows and greater stability in global markets.

Among the major stocks, Maybank fell to RM9.95, Public Bank declined to RM4.71, CIMB remained steady at RM7.20, Tenaga Nasional slipped to RM12.69, and IHH Healthcare decreased to RM7.89. Other stocks like JAKS Resources, Top Glove, and Ni Hsin also experienced losses. The top gainers included Petronas Dagangan (RM19.88), Press Metal Aluminium (RM6.60), and Kuala Lumpur Kepong (RM20.10).

On the downside, Hong Leong Financial Group fell to RM17.56, and United Plantations decreased to RM30.36. Hibiscus Petroleum and Petronas Chemicals both rose by eight sen to RM2.37 and RM4.40, respectively. The FBM Emas Index fell to 11,927.19, the FBM Top 100 Index declined to 11,722.35, and the FBM Mid 70 Index dropped to 17,120.48.

Sector-wise, the Financial Services Index fell to 18,588.69, while the Industrial Products and Services Index edged up to 173.42. The Plantation Index reduced to 8,625.75, and the Energy Index rose to 824.62.