KUALA LUMPUR, Dec 17 — As global financial hubs braced for this week’s series of central bank decisions, Bursa Malaysia closed lower, caught in the crossfire of mounting uncertainties stemming from the US Federal Reserve (Fed), according to an analyst.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 0.59 per cent or 9.52 points to 1,597.33 from Monday’s close of 1,606.85.

The index opened 1.59 points lower at 1,605.26 and moved between 1,594.51 and 1,606.81 throughout the day.

Market breadth was also negative as losers overwhelmed gainers 704 to 346, while 529 counters were unchanged, 892 untraded and 11 suspended.

Turnover decreased to 2.99 billion units worth RM2.43 billion versus 3.16 billion units valued at RM2.45 billion on Monday.

SPI Asset Management managing director Stephen Innes said the Fed is in a tough spot: the US job market is strong, and inflation isn’t slowing down as expected. This makes it challenging for the central bank to decide whether to continue lowering interest rates or pause.

"Fed officials are split. Some worry that cutting rates too soon could backfire, while others question whether past rate cuts have worked at all. Investors had hoped for more rate cuts, but now they’re uncertain, causing market instability,” he told Bernama.

Adding to the concerns, he said China, a major trading partner for Malaysia, is struggling with potential deflation (falling prices) and has not delivered strong economic support policies despite big promises. This has shaken investor confidence, further dragging down Malaysian stocks.

"In short, global uncertainty over US interest rates and China’s economic slowdown is putting pressure on Malaysia’s stock market and show just how connected global economies are,” Innes added.

Among heavyweights, Press Metal Aluminium was 17 sen lower at RM4.86, Petronas Chemicals fell 20 sen to RM4.78, Hong Leong Bank shed 32 sen to RM20.12, Sime Darby slid 9.0 sen to RM2.34, and Public Bank eased 2.0 sen to RM4.52.

ACE Market debutant Vanzo Holdings topped the most active stocks, gaining 1.5 sen to 16.5 sen, followed by Zen Tech, which was flat at 1.0 sen. MYEG was 1.0 sen lower at 95 sen, Pestech rose 2.5 sen to 17 sen and Bumi Armada increased 3.0 sen to 66.5 sen.

On the index board, the FBM Emas Index decreased 66.14 points to 12,262.03, the FBM Emas Shariah Index fell by 71.00 points to 12,283.14, and the FBM ACE Index shed 66.46 points to 5,241.86.

The FBMT 100 Index sank 65.34 points to 11,945.99 and the FBM 70 Index slid 79.43 points to 18,410.06.

Sector-wise, the Financial Services Index tumbled 116.55 points to 18,936.01, the Industrial Products and Services Index eased 2.96 points to 172.14, the Energy Index trimmed 2.37 points to 816.66, and the Plantation Index lost 25.65 points to 7,628.09.

The Main Market volume narrowed to 1.59 billion units valued at RM2.21 billion against Monday’s 1.70 billion units worth RM2.18 billion.

Warrants turnover dwindled to 662.60 million units worth RM64.50 million from 998.51 million units valued at RM126.58 million yesterday.

The ACE Market volume expanded to 739.59 million units valued at RM159.48 million compared with 453.29 million units worth RM140.90 million previously.

Consumer products and services counters accounted for 206.01 million shares traded on the Main Market, industrial products and services (346.99 million), construction (94.26 million), technology (295.82 million), SPAC (nil), financial services (83.91 million), property (197.59 million), plantation (29.70 million), REITs (13.92 million), closed/fund (8,900), energy (126.98 million), healthcare (91.11 million), telecommunications and media (40.26 million), transportation and logistics (31.82 million), utilities (32.03 million), and business trusts (111,600). — Bernama