Bursa Malaysia opens lower as Fed hawkishness, US-China trade jitters weigh

KUALA LUMPUR, 24 SEPTEMBER 2026 —

Bursa Malaysia’s benchmark index opened 0.15% lower at 1,673.84 on Thursday, tracking Wall Street’s decline amid rising US Treasury yields and hawkish remarks from Federal Reserve officials, while investors adopted a cautious stance ahead of the US-China summit.

Analysts cited US Fed Governor Michael Barr’s comments on potential further interest rate hikes as the primary driver, echoing overnight volatility in global markets. Kenneth Leong, head of research at Berjaya Research, told Bernama that traders were likely to consolidate recent gains while awaiting clarity from the US-China trade talks, which began Thursday.

"The broader market is poised for some consolidation following its recent gains, as investors may lock in profits while awaiting fresh catalysts," Leong said. He noted, however, that higher oil prices could revive interest in energy-related stocks, while rotational trades into lagging sectors might offer near-term opportunities.

Among heavyweights, Maybank (MYB) held steady at RM10.14, while Public Bank (PBB) slipped 3 sen to RM4.80 and CIMB (CIMB) fell 2 sen to RM7.91. Tenaga Nasional (TNB) rose 2 sen to RM13.16, and IHH Healthcare (IHH) climbed 14 sen to RM8.14, bucking the broader trend.

The FBM Mid 70 Index led declines with a 0.34% drop to 17,772.66, followed by the FBM Emas Index (down 0.19% to 12,453.43) and FBM Top 100 (down 0.20% to 12,242.73). Sector-wise, Financial Services was the worst performer, falling 0.23% to 19,532.64, while Industrial Products & Services was the sole gainer, up 0.12% to 185.18.

Energy stocks showed mixed movements, with Petronas Chemicals (PCH) and Petron (PET) rising 12 sen and 8 sen, respectively, while Petronas Dagangan (PETD) slid 10 sen to RM19.90. Hengyuan Refining (HYR) surged 17 sen to RM4.64, the top gainer, while Nestlé (NES) and Kuala Lumpur Kepong (KLK) led declines with drops of 46 sen and 20 sen, respectively.

The session’s subdued activity reflects investor caution ahead of the US-China summit, where any trade-related developments could influence risk sentiment. Meanwhile, oil price movements—currently near $85 per barrel—remain a key variable for Malaysian equities, particularly for energy and plantation-linked stocks.

Leong’s outlook suggests limited upside momentum in the near term, with traders likely to wait for clearer signals from both monetary policy and geopolitical fronts. If crude prices sustain their recent rally, however, oil and gas counters—including Sarawak Oil Palms (SOP) and Velesto Energy (VEL)—could see renewed buying interest.