KLCI falls as foreign selling weighs on Malaysian equities

KUALA LUMPUR: The FBM KLCI ended lower on Friday as persistent foreign selling and elevated US Treasury yields continued to weigh on Malaysian equities.

The benchmark index fell 9.22 points, or 0.55%, to 1,665.56, although market breadth turned positive with 625 advancers against 564 decliners, while 505 counters were unchanged.

Technology led the gains, rising 2.50%, followed by Construction at 2.20% and Transportation and Logistics at 0.71%. Property was the biggest laggard, declining 1.62%, followed by REITs at 0.65% and Financial Services at 0.63%.

foreign selling

The near-term outlook was expected to remain cautious, with the KLCI likely to trade in consolidation mode amid foreign selling, a stronger US dollar and expectations of further US monetary tightening.

However, the recent market correction was seen as having brought valuations to more attractive levels, potentially encouraging selective buying in blue-chip counters.

Technology stocks are expected to remain in focus, supported by AI and semiconductor demand, while Construction could benefit from infrastructure, utilities and data-centre projects. Plantation stocks may also attract interest amid elevated CPO prices.

Technically, the KLCI remained below its EMA9, EMA20, EMA120 and SMA200 indicators. The 1,655 level was identified as key support, with a break potentially exposing the index to further downside.

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