Late Selling Drags Bursa Malaysia Lower as Investors Rotate into Mid- and Small-Cap Stocks
KUALA LUMPUR, April 27 — Bursa Malaysia ended the trading session on a weaker note after late selling pressure erased earlier gains, as investors shifted their focus toward mid- and small-cap stocks with stronger domestic growth prospects.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 3.07 points, or 0.17 per cent, to close at 1,717.27, its lowest level of the day, compared with last Friday’s close of 1,720.34.
The index had started the day on a firmer footing, opening 4.13 points higher at 1,724.47 and climbing to an intraday high of 1,731.79 in early trade before losing momentum toward the close.
Market activity remained relatively balanced, with gainers narrowly outpacing losers at 599 to 579, while 617 counters were unchanged. A total of 953 counters were untraded and 67 suspended.
Trading volume increased to 3.74 billion shares worth RM3.30 billion, compared with 3.22 billion shares valued at RM3.25 billion in the previous session, reflecting sustained participation despite the softer close.
Market observers noted that the late pullback was largely driven by waning interest in large-cap stocks, as investors rotated funds into smaller, higher-beta counters perceived to offer clearer earnings visibility and stronger domestic exposure.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the intraday reversal suggested that early buying in blue-chip counters was not backed by sustained institutional flows.
He pointed out that while the telecommunications sector initially attracted interest following Telekom Malaysia’s announcement of a higher dividend payout policy, the momentum was insufficient to support the broader market.
The company recently raised its dividend commitment to at least 75 per cent of profit after tax and minority interest on a quarterly basis, a move that briefly lifted sentiment in the sector.
However, Mohd Sedek said the broader market remained cautious, with investors reluctant to increase exposure to large-cap stocks amid an uncertain global backdrop.
He added that the FBM70 and FBM Small Cap indices continued to trend higher, signalling an ongoing reallocation of capital rather than a full market exit. This divergence suggests that investors are becoming more selective, favouring domestically driven counters with stronger earnings prospects.
External factors also weighed on sentiment, particularly geopolitical developments linked to the Strait of Hormuz, which have heightened concerns over global energy supply and market stability.
Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng maintained a cautiously optimistic outlook, noting that the FBM KLCI has managed to hold above the key 1,700 support level.
He said the recent rebound from around 1,680 indicates that investors are still willing to accumulate stocks during market dips, although resistance near the 1,730 level could limit further upside in the near term.
Thong expects the index to trade within a range of 1,700 to 1,740 for the week, reflecting a consolidation phase amid mixed market signals.
Among heavyweight stocks, banking and utility counters came under pressure. Maybank declined six sen to RM11.10, Public Bank fell nine sen to RM4.72, while Tenaga Nasional slipped eight sen to RM14.58. CIMB dropped 15 sen to RM7.65 and IHH Healthcare eased five sen to RM8.77.
On the actives list, trading interest remained strong in selected counters. Inari Amertron rose 24 sen to RM2.06, while AirAsia X edged down one sen to RM1.24.
Gainers were led by Telekom Malaysia, which surged 48 sen to RM7.58, followed by Fraser and Neave and Press Metal, which each advanced 38 sen.
On the downside, United Plantations fell 70 sen to RM31.62, while Hong Leong Bank and Hong Leong Financial Group also recorded declines.
Sectoral indices showed mixed performance. The Financial Services Index dropped 245.90 points, while the Plantation Index declined 10.68 points. In contrast, the Energy and Industrial Products indices posted modest gains.
Meanwhile, Bursa Malaysia announced that the exchange will be closed on May 1 in conjunction with Labour Day and will resume trading on May 4.
The market is expected to remain cautious in the near term, with investors closely monitoring global developments and rotating selectively into sectors offering clearer earnings visibility.
-wilayah.com.my
