KUALA LUMPUR: Bursa Malaysia extended its losses for a second straight day as investor sentiment remained subdued due to increasing external risks, including sluggish economic growth in China and unexpectedly strong US economic data.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 14.02 points, or 0.86 per cent, to 1,600.81 from Wednesday's close of 1,614.83.
The index opened 3.34 points higher at 1,618.17 and fluctuated between 1,600.75 and 1,618.17 during the day.
On the broader market, decliners outnumbered advancers 900 to 231, while 454 counters were unchanged.
Among the FBMKLCI components, the communication sector led the gainers, while the sell-off was concentrated in data centre-related stocks.
This was triggered by President Biden's announcement of additional restrictions on the export of AI chips, including those from companies like NVIDIA.
UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said on Bursa Malaysia, all sector indices posted losses, reflecting the broader market downturn.
He said despite this negative performance, trading volume remained robust, with 3.28 billion shares changing hands.
"This suggests that investor activity continued, indicating a level of resilience and engagement despite the prevailing market uncertainty," he told Business Times.
Mohd Sedek noted that the combination of weak Chinese economic data, robust US economic performance, and uncertainty surrounding future US trade policies has created a challenging environment for investors.
"These factors continue to undermine risk appetite, contributing to the prolonged decline in the FBM KLCI, which has now dropped more than 42 points year-to-date.
"The broader economic outlook remains clouded by these external pressures," he added.