FBM KLCI Slips Amid Selective Buying as AI Rally Supports Tech Stocks

Malaysia’s benchmark FBM KLCI slipped 0.24% to close at 1,746.31 on Wednesday as cautious sentiment persisted despite continued strength in technology-related counters. Market breadth turned negative, with 604 decliners outpacing 583 gainers, reflecting selective participation across sectors.

Technology stocks led gains, rising 2.24%, followed by construction and transportation counters, while telecommunications, plantation and healthcare shares emerged as the main laggards. Investors remained cautious amid ongoing geopolitical tensions and inflation concerns globally.

On Wall Street, the S&P 500 and Nasdaq Composite extended gains to fresh record highs, supported by strong advances in artificial intelligence and semiconductor-related counters. Optimism surrounding structural AI demand boosted sentiment, with chipmakers continuing to attract buying interest despite hotter-than-expected U.S. inflation data.

AI Rally

Asian markets also closed broadly firmer, led by gains in South Korea, Japan and China, contributing to improved regional sentiment.

For the near term, Bursa Malaysia is expected to remain range-bound with a cautious upward bias, supported by resilient technology stocks and improving external sentiment. However, weakness in defensive heavyweights and lingering concerns over elevated oil prices, inflationary pressures and Middle East tensions are likely to keep volatility elevated.

The technology sector remains the market’s preferred near-term theme amid sustained global AI capital expenditure momentum. Energy counters may also continue drawing interest as Brent crude prices stay elevated following the collapse of U.S.–Iran talks.

Technically, the FBM KLCI’s breakout above its symmetrical triangle formation signals further upside potential towards 1,777, although near-term profit-taking may emerge after the recent rally.

#businessnews