KUALA LUMPUR: Bursa Malaysia's benchmark index ended the first trading day of 2025 lower, pressured by negative sentiment from Wall Street and weaker economic data from China.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 9.46 points or 0.58 per cent to 1,632.87 from Tuesday's close of 1,642.33.
The index opened 1.01 points lower at 1,641.32 and hovered between 1,629.23 and 1,641.32 throughout the day.
The broader market was negative with losers led gainers 580 to 449, while 496 counters remained unchanged, 830 were untraded and 11 suspended.
Turnover rose to 2.64 billion units valued at RM1.97 billion from Tuesday's 2.41 billion units valued at RM2.06 billion.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the local market was pressured by negative sentiment from Wall Street and weaker economic data from China.
He said the Caixin/S&P Global Manufacturing Purchasing Managers Index (PMI) for December declined to 50.5 from 51.5 in November, indicating a slowdown in China's manufacturing activity, which plays a vital role in Malaysia's trade-driven economy.
"The market experienced limited support, with only a handful of FBM KLCI components registering gains, while 18 counters ended in the red. Losses were led by the industrial chemicals and energy sectors, reflecting their exposure to global industrial demand," he told Business Times.
Sedek added that the industrial products and services index emerged as the worst-performing sector, closely reflecting the impact of China's weaker PMI data.
Looking ahead, he said the investor sentiment is expected to stay cautious, driven by uncertainties surrounding global markets and China's economic trajectory.
"Nevertheless, the current market pullback presents an opportunity for investors to identify undervalued stocks with robust fundamentals.
"Prioritising sectors less dependent on external demand could help reduce exposure to risks, while global developments are likely to continue influencing the market's direction in the initial months of 2025," he said.