KUALA LUMPUR: The local stock market endured a broad-based sell-off on Tuesday, with over 1,000 counters closing in the red as persistent foreign outflows and escalating global uncertainties weighed on sentiment.
The FBM KLCI fell 15.73 points or 1% to a one-month low of 1,555.66, with 23 of its 30 component stocks declining. All sectoral indices ended lower, led by technology (-4.36%), property (-3.21%), and construction (-3.12%).
Losers outnumbered gainers by a staggering 1,045 to 147, while 331 counters remained unchanged. Market activity was heavy, with 3.84 billion shares traded, valued at RM3.05 billion.
Blue Chips and Broader Market Take a Hit
Among the biggest losers in the KLCI:
- Nestlé Malaysia tumbled RM1 to RM79.12.
- PPB Group declined 34 sen to RM10.76.
- Petronas Dagangan lost 24 sen to RM18.46.
Beyond the benchmark index:
- Malaysian Pacific Industries fell RM1.62 to RM17.04.
- Dutch Lady Milk Industries dropped 90 sen to RM27.60.
- Fraser & Neave Holdings slid 58 sen to RM25.04.
Foreign Outflows Continue to Pressure Market
Vincent Lau, head of equity sales at Rakuten Trade, noted that foreign investors have been steadily exiting the market.
“Our market has been on this downtrend for some time. Foreign outflow last week alone was RM1.27 billion, and year-to-date, it has already hit RM5.4 billion—exceeding last year’s total,” he said.
Lau attributed the extended sell-off to external factors, including geopolitical tensions and policy shifts in major economies.
“Uncertainties such as Trump’s NATO threats, the Ukraine war, and US tariffs on China and Mexico are fueling volatility. Every other day, there’s new global news unsettling the market,” he added.
Tech Stocks Hit Hardest
Technology stocks bore the brunt of the sell-off, with some trading at levels last seen during the Covid-19 crash.
“Some tech stocks are at Covid-era prices, even though there’s no lockdown. The Nvidia chip ban triggered a sharp decline in stocks like NationGate Holdings, which hit limit down before rebounding,” Lau explained.
Despite the slump, he sees potential buying opportunities for investors with a higher risk appetite.
“There are bargains, but also a lot of uncertainties. Investors are cautious, preferring to hold cash and wait for more clarity,” he said.
Banking Sector Shows Resilience
While most sectors struggled, banking and index-linked stocks remained relatively stable.
“The banks are doing fine, and index-linked stocks are holding up,” Lau added. The Financial Services Index declined only 0.65%, making it one of the more resilient segments of the market.
Sectoral Breakdown of Foreign Flows
According to MIDF Amanah Investment Bank’s fund flow report, foreign investors continued their selling streak for the 19th consecutive week, with a sharp RM1.27 billion net outflow.
Sectors that saw net foreign inflows:
- Construction: RM24.1 million
- Telecommunications & Media: RM14.7 million
- REITs: RM6.7 million
Sectors with the largest foreign outflows:
- Financial Services: RM362.1 million
- Consumer Products & Services: RM314.9 million
- Utilities: RM255.1 million
With uncertainty lingering, market sentiment remains fragile as investors weigh risks and opportunities in the coming weeks.–THE EDGE
