KUALA LUMPUR – Bursa Malaysia extended its subdued trading to close lower today, dragged by persistent selling as the market was influenced by Wall Street’s sharp reaction to the introduction of China’s DeepSeek artificial intelligence (AI) model, said an analyst.
At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 6.28 points, or 0.4 per cent, to end at 1,552.69 compared to yesterday’s close of 1,558.97.
The barometer index opened 1.53 points lower at 1,557.44 — its high for the day, and moved to a low of 1,544.87 during the morning session.
Market breadth was also negative as decliners thumped gainers 537 to 372, with 466 counters unchanged, 924 untraded and 37 suspended.
Turnover narrowed to 2.19 billion units valued at RM2.01 billion compared to 2.76 billion units valued at RM2.38 billion on Monday.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan noted that while DeepSeek’s breakthrough could be viewed as a positive development for the AI sector, it has instead heightened investor concerns.
This unease in global markets has intensified selling pressure on the FBM KLCI, which has been under strain since last Thursday, he said.
“Within the index, only a handful of counters managed to post gains. Utilities stocks remained under selling pressure, while those linked to AI and data centres continued to decline.
“Nevertheless, despite these short-term challenges, Malaysia’s equity market retains significant potential for long-term growth,” he told Bernama.
According to Mohd Sedek, as global firms reassess their capital expenditure strategies, Malaysia’s data centre industry is well-positioned to benefit due to its cost-effective offerings.
Among the heavyweights, Maybank dropped 12 sen to RM10.24, CIMB fell nine sen to RM7.94, Public Bank eased one sen to RM4.37, IHH Healthcare trimmed eight sen to RM7.15, while Tenaga Nasional gained 16 sen to RM13.60.
For actives, YTL Power lost 11 sen to RM3.11, Nationgate slid nine sen to RM1.79, YTL Corp and Gamuda eased three sen each to RM1.90 and RM4.03 respectively, while Oriental Kopi rose two sen to 84.5 sen. – January 28, 2025