Malaysian shares slide after Wall Street selloff, ringgit weakens
Technology led declines across all sectoral indices, while losing stocks outnumbered gainers nearly 10 to one.
Malaysia’s FBM KLCI lost 16.5 points, or over 1%, reaching 1,619.36 at 9.10am on Nov 6 as Asian markets retreated following a steep overnight decline on Wall Street. The ringgit also weakened, last trading at 4.0555 against the US dollar.
YTL Power International Bhd recorded the benchmark’s largest decline, dropping more than 3% to RM5.10. Gamuda Bhd fell over 3% to RM4.78.
Every sectoral index declined, with technology suffering the heaviest losses amid concerns that congressional Democrats could pursue tighter rules for the artificial intelligence (AI) industry. ViTrox Corporation Bhd, the sector’s largest company by market capitalisation, slid nearly 5% to RM10.10 despite reporting its strongest quarter since its 2005 listing.
Pheim Asset Management fund manager Khoo Zing Sheng described the immediate market adjustment as volatile repricing rather than an opportunity to buy quickly after the fall. He said the Trump administration was unlikely to let the US surrender its competitive advantage over China, potentially opening the way for policy compromises.
Commerzbank analysts Charlie Lay and Henry Hao expected the ringgit to consolidate between 4.00 and 4.10 in the near term. They said its direction would depend on global risk sentiment, the US dollar, expectations surrounding the US Federal Reserve and oil prices.
