The Malaysian stock market has experienced a downward trajectory over the past three sessions, losing nearly 30 points, equivalent to a 1.9% decrease. Consequently, the Kuala Lumpur Composite Index (KLCI) is now just below the 1,560-point mark and is anticipated to face further pressure as it opens on Tuesday.
The outlook for Asian markets is not promising, primarily due to expected declines in oil and technology stocks. This trend follows the European and U.S. markets, which mostly ended lower, setting the stage for a similar performance in Asia. On Monday, the KLCI saw significant losses, especially in the industrial and plantation sectors, whereas the financial and telecommunications sectors posted mixed results. The index dropped by 14.76 points, or 0.94%, closing at 1,558.97, having peaked at 1,573.31 during the day. Activily traded stocks showed varying performance: 99 Speed Mart Retail decreased by 0.45%, Axiata fell 1.34%, while Celcomdigi and CIMB Group saw gains of 0.53% and 0.25%, respectively. Gamuda fell sharply by 3.10%, IHH Healthcare and Maxis each rose 0.56%, and Kuala Lumpur Kepong suffered a 0.39% decline. Other noteworthy changes included Maybank's 0.38% drop, MISC's slight 0.14% gain, MRDIY's 1.18% decrease, Nestle Malaysia's marginal rise of 0.02%, and Petronas Chemicals' 0.43% loss. PPB Group was down 1.66%, Press Metal decreased by 1.39%, while Public Bank saw a 1.15% increase. QL Resources dipped 0.22%, and significant losses were observed for Sime Darby (-0.46%), SD Guthrie (-4.49%), and Sunway, which plunged by 6.59%. However, Telekom Malaysia advanced by 0.77%, Tenaga Nasional declined 2.33%, YTL Corporation fell drastically by 8.96%, and YTL Power saw the steepest drop of 10.80%. IOI Corporation, RHB Bank, and Hong Leong Financial remained unchanged.
On Wall Street, the major indices opened on a negative note, with the Dow Jones Industrial Average managing to recover, albeit slightly, while both the NASDAQ and S&P 500 incurred significant losses. The Dow rose by 289.33 points or 0.65% to close at 44,713.58. Conversely, the NASDAQ tumbled 612.47 points or 3.07% to close at 19,341.83, and the S&P 500 dropped 88.96 points or 1.46% to end at 6,012.28.
Wall Street's sell-off was heavily influenced by weakness in the technology sector, particularly impacted by Nvidia (NVDA). Nvidia's decline followed the emergence of a Chinese startup, DeepSeek, whose AI Assistant overtook ChatGPT to become the most popular free application on Apple's U.S. App Store.
Anticipation regarding interest rates also affected market sentiment ahead of the Federal Reserve's monetary policy meeting scheduled this week. Although it is widely expected that the Fed will maintain interest rates at their current level, market participants will be keenly observing the accompanying statement for insights into future rate changes. Recent economic indicators have fueled apprehension that the Fed may hold rates steady for an extended period.
Additionally, oil prices took a steep fall on Monday due to apprehensions over potential tariff threats and uncertainties surrounding U.S. trade policies. Weak manufacturing data from China also contributed to concerns regarding demand prospects. West Texas Intermediate Crude oil futures for March declined by $1.49, or 2%, closing at $73.17 per barrel.
