KUALA LUMPUR, Oct 16 — Bursa Malaysia closed lower in tandem with the weak performance across the region following a negative cue from global equities overnight with strong selling In technology stocks, said an analyst.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 9.34 points, or 0.56 per cent, to 1,632.63 compared with Tuesday’s close of 1,641.97.

The benchmark index, which opened 1.83 points higher at 1,643.80, marking its intraday high, slipped to a low of 1,629.81 later in the day.

The broader market was negative, with decliners thumping gainers 701 to 340, while 505 counters remained unchanged, 947 untraded, and eight suspended.

Turnover narrowed to 2.79 billion units worth RM3.16 billion versus 2.87 billion units valued at RM2.77 billion on Tuesday.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said many investors believed the selloffs such as in ASML Holding NV (ASML), Taiwan Semiconductor Manufacturing Company Ltd (TSMC) and Nvidia, which stoke the technology retreat, reflected growing skepticism around the artificial intelligence (AI) rally and signals deeper concerns for the global economy.

ASML, a leading supplier to major chipmakers such as TSMC, Intel, and Samsung, saw its share price plummet by 16 per cent after issuing a disappointing sales forecast, significantly impacting the broader semiconductor sector.

As for the local bourse, Thong said the online equities broker maintained its cautious view on the market given the increasing volatility and uncertainty in the macro environment. Nonetheless, the benchmark index remains well supported above the 1,630 level.

"Despite today’s selloff, we believe it creates an attractive entry point for bargain hunters, given the robust economic fundamentals supporting the FBM KLCI’s long-term prospects. We hold our weekly target at 1,630-1,650,” Thong told Bernama.

Meanwhile, UOB Kay Hian Wealth Advisors, head of Investment Research Mohd Sedek Jantan said that given Malaysia's solid economic fundamentals, the recent decline may present a buying opportunity.

"Among the FBM KLCI components, the consumer sector emerged as a leading gainer, demonstrating robust economic growth that benefits consumer purchasing power and confidence,” Mohd Sedek said.

On the bourse, heavyweights SD Guthrie and Press Metal were 11 sen weaker at RM4.61 and RM4.71 respectively, KL Kepong dipped 46 sen to RM21.04, CelcomDigi shed 6.0 sen, Sime Darby declined 4.0 sen to RM2.38, and Sunway eased 6.0 sen to RM4.39.

As for the active counters, YTL Corp dropped 1.0 sen to RM2.30, WCT Holdings shaved 3.5 sen to 91 sen, Sime Darby Property trimmed 5.0 sen to RM1.50, and Capital A increased 2.0 sen to 95.5 sen.

On the index board, the FBM Emas Index decreased by 55.25 points to 12,268.95, the FBMT 100 Index fell by 53.05 points to 11,971.82, the FBM Emas Shariah Index declined by 68.27 points to 12,165.56, the FBM 70 Index lost 20.64 points to 17,583.16, and the FBM ACE Index narrowed by 14.64 points to 5,060.85.

Sector-wise, the Financial Services Index dropped 99.64 points to 19,315.35, the Plantation Index sank 63.87 points to 7,200.48, the Industrial Products and Services Index trimmed 1.65 points to 173.98, and the Energy Index shed 7.32 points to 849.36.

The Main Market volume expanded to 1.66 billion units valued at RM2.93 billion from Tuesday’s 1.57 billion units worth RM2.48 billion.

Warrants turnover increased to 853.42 million units worth RM148.88 million against 818.81 million units valued at RM125.52 million previously.

The ACE Market volume however dwindled to 272.28 million units valued at RM83.56 million versus 475.54 million units worth RM166.16 million yesterday.

Consumer products and services counters accounted for 266.39 million shares traded on the Main Market, industrial products and services (317.42 million), construction (160.22 million), technology (152.01 million), SPAC (nil), financial services (100.04 million), property (292.80 million), plantation (25.57 million), REITs (19.06 million), closed/fund (16,700), energy (98.74 million), healthcare (48.65 million), telecommunications and media (66.02 million), transportation and logistics (37.15 million), utilities (86.11 million), and business trusts (49,100). — Bernama