KUALA LUMPUR: Bursa Malaysia's thirty-stock index closed below the 1,590 level as investors remained cautious and reluctant to take long positions due to a lack of buying catalysts.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 9.50 points or 0.59 per cent to 1,588.68 from yesterday's close of 1,598.18.
The benchmark index, which opened 1.63 points higher at 1,599.81, moved between 1,588.68 and 1,599.94 during the trading session.
The broader market was negative, with decliners leading gainers 675 to 371 while 461 counters remained unchanged, 959 untraded, and 23 suspended.
Turnover improved to 3.44 billion units valued at RM2.50 billion versus 2.72 billion units valued at RM2.44 billion yesterday.
Rakuten Trade Sdn Bhd's equity research vice president Thong Pak Leng said major Asian indices are facing considerable challenges due to a combination of economic and geopolitical pressures.
Thong said the US Federal Reserve's tight monetary policy, aimed at curbing inflation, has elevated borrowing costs, suppressing economic activity among consumers and businesses.
"Simultaneously, geopolitical tensions and trade barriers have further heightened market instability, disrupting global trade flows and negatively impacting emerging markets," he said.
On the domestic front, Thong said the benchmark index remains in consolidation mode and shows no signs of a strong rebound due to a lack of buying interest and cautious trading.
He said the FBM KLCI is likely to remain under selling pressure. Key support lies at 1,585, which, if breached, could lead to a further decline.
"Macro factors such as corporate earnings growth and economic improvements will be critical in reversing market sentiment.
"Without significant buying interest or positive catalysts, the index could remain in a consolidation phase. Therefore, we anticipate the benchmark index to trend within the range of 1,585-1,610 towards the end of the week," he added.