Bursa Malaysia Slips as Geopolitical Fears Outweigh Renewable Gains
FBM KLCI fell 0.12% on Monday, dragged down by consumer and banking stocks despite a rally in solar-related shares.
Key points
- FBM KLCI fell 0.12% to 1,663.54 on Monday, with Malaysian Pacific Industries and Nestle among the top decliners.
- Renewable energy stocks Solarvest, Samaiden, and Pekat all rose, bucking the broader market trend of caution.
- Berjaya Research and Rakuten Trade expect continued volatility as geopolitical tensions keep investors selective in their allocations.
Bursa Malaysia opened in negative territory on Monday as geopolitical tensions in the Middle East dampened investor sentiment. The FBM KLCI index declined 2.02 points, or 0.12%, to close at 1,663.54 by 9:17 am, erasing early momentum and extending a recent period of weakness for the broader market.
While the index remained subdued, specific sectors displayed divergent performance. Renewable energy stocks bucked the broader trend, with Solarvest, Samaiden, and Pekat all posting gains. This contrasted with heavy losses in major blue-chip names, indicating that capital is rotating toward defensive or thematic plays rather than broad-based growth.
Blue-chip stocks lead the decline
Pressure on the index was driven by weakness in large-cap companies. Malaysian Pacific Industries was the top loser, shedding 80 sen to trade at RM42. Nestle followed, dropping 78 sen to RM88.80, while Sunway Construction eased 52 sen to RM7.36. TIME dotCom also gave up ground, falling 48 sen to RM5.93, reflecting broad caution among institutional investors in key sectors.
Renewable energy counters post gains
Against the backdrop of a soft market, renewable energy stocks recorded notable advances. Solarvest climbed 28 sen to RM3.61, while Samaiden and Pekat both added 10 sen and 26 sen respectively, settling at RM2.21. This sector-specific strength suggests that investors are selectively allocating funds to companies with clear thematic drivers, even when the overall index faces headwinds from macroeconomic uncertainty.
Technical levels signal choppy trading
Berjaya Research Sdn Bhd noted that the index formed a bearish candlestick, indicating continued downward pressure. The firm identified 1,655 and 1,650 points as immediate support levels, with resistance at 1,687 and 1,700 points. Rakuten Trade echoed this caution, predicting the index will remain in correction mode within the 1,660 to 1,680 range. Both firms cited geopolitical risks and easing Brent crude prices, which fell to US$103 per barrel, as key factors limiting near-term upside potential.
