Over 850 stocks fall as US inflation fears rattle Bursa Malaysia
Bursa Malaysia experienced a significant sell-off, with over 850 stocks declining due to fears of further U.S. Federal Reserve interest rate hikes. The market downturn was driven by hotter-than-expected U.S. inflation data, impacting regional investor sentiment.
Why it matters
Global market volatility highlights the sensitivity of emerging markets to U.S. monetary policy and inflationary trends.
KUALA LUMPUR: Bursa Malaysia closed broadly lower on Thursday, with more than 800 stocks ending in the red as hotter-than-expected US inflation fuelled concerns over further Federal Reserve interest rate hikes, triggering a sell-off across regional markets.
The FBM KLCI closed 4.02 points, or 0.25%, lower at 1,623.70 on Thursday. The index traded within an 8.47-point range, between 1,617.14 and 1,625.61.
In the broader market, decliners outpaced advancers, with 852 stocks closing lower versus 294 gainers, resulting in a market breadth ratio of 0.35 and signalling widespread selling pressure.
Turnover stood at 3.06 billion shares worth RM3.03bil.
Dealers said stronger-than-expected US inflation intensified selling pressure amid concerns that the Federal Reserve could keep interest rates elevated for longer or raise them further.
They added that weakness across regional markets further dampened investor sentiment, prompting broad-based selling on Bursa Malaysia, particularly in technology stocks.
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