KUALA LUMPUR: The FBM KLCI fell further on Friday as traders awaited the final wave of results coming out of Corporate Malaysia, while on the external front, uncertainties over the AI narrative and US tariffs continued to sap risk appetite.
Global markets started Friday on a softer footing following another tech-driven rout on Wall Street, as the valuations of tech stocks continued to see-saw amid fears over escalating debt to fund AI development as well as its potential disruption of the broader tech sector.
The FBM KLCI is poised to end the week on a four-day losing streak and about 0.8% lower, as domestic corporate earnings failed to revive a rally that had taken the index to a multi-year high of 1,770.
The benchmark index opened 3.88 points lower at 1,737.06, dragged lower by profit-taking in heavyweight banks that had recently announced their earnings.
Maybank shed six sen to RM11.94, falling further off an all-time high of RM12.38 recorded earlier this week.
Public Bank lost six sen to RM4.94, and AmBank dropped four sen to RM6.61.
Pending their results, CIMB shed 11 sen to RM8.35, Hong Leong Bank slid four sen to RM23.80 and RHB dropped four sen to RM8.26.
Aluminium producer Press Metal
, which released its results yesterday, fell 12 sen to RM7.48.
Investors have also taken a more cautious approach this week following the US Supreme Court’s decision that many of President Donald Trump’s trade tariffs are illegal, prompting the premier to hike global tariffs to 15% and speculation over whether there will be attempts to circumvent the Supreme Court’s ruling.
According to Apex Research, the global sentiment remained cautious amid lingering legal uncertainty surrounding US tariff policies, adding to broader trade-related policy overhang
“The ruling that certain tariffs were unlawful has raised concerns over potential legal disputes, which may continue to cloud the global trade outlook. For Malaysia, lingering external uncertainties may temper foreign fund flows.”
The research firm expects the FBM KLCI trade range-bound in the near term, as investors are likely to focus on upcoming corporate earnings, while persistent external uncertainties may cap near-term upside.
