Cautious sentiment persists as investors weigh global chip rout

The Malaysian stock market ended last week on a cautious note, with the FBM KLCI rising 0.24% to 1,667.74 despite widespread weakness across regional markets. The benchmark index outperformed many Asian peers, although market breadth remained negative as decliners significantly outnumbered gainers, reflecting lingering investor caution.

Financial, plantation and utilities stocks provided support, while technology counters led losses following a sharp global sell-off in semiconductor shares. Property stocks also retreated as investors reduced exposure to sectors perceived as more vulnerable to market uncertainty.

global chip rout

Globally, US equities finished little changed as gains in software and healthcare stocks offset steep declines in chipmakers. The weakness spread across Asia, dragging down technology-heavy markets such as South Korea and Japan, while European equities also closed lower.

Looking ahead, investor attention is expected to focus on key US economic data, including manufacturing activity and employment figures, which could influence expectations for the Federal Reserve’s interest rate policy. Domestically, Malaysia’s expanding role in artificial intelligence infrastructure, resilient investment activity and measures to support the ringgit are expected to provide some support to sentiment.

However, continued foreign fund outflows, political uncertainty ahead of the general election and persistent weakness in technology stocks may limit gains in the near term.

#businessnews