KUALA LUMPUR, 24 September 2025 — Bursa Malaysia opened Wednesday amid early profit-taking, as investors pared back positions in response to caution signalled by U.S. Federal Reserve Chair Jerome Powell over lofty equity valuations. The FBM KLCI slipped, retreating from recent highs around the 1,600 zone, as buyers paused for fresh data and clearer direction from global central banks.
At the open, the index fell 0.74 points to 1,602.81, weighed by losses in large-caps such as Petronas Gas, which dropped 18 sen to RM18.26, Tenaga Nasional that lost six sen to RM13.34, and CIMB which eased by five sen to RM7.24. On the other side of the ledger, pockets of sectoral strength emerged: Hong Leong Financial Group rose 16 sen to RM17.10, Malayan Cement added nine sen to RM6.40, and Sptrizer saw gains of seven sen to RM2.05. Among the active names, Espress Power stood out upon its debut on the ACE Market, trading up 1.5 sen to 21.5 sen.
Powell’s Comments Spark Reassessment
The pullback followed remarks from Jerome Powell, who cautioned that parts of equity markets may be “fairly highly valued,” dampening some of the AI- and growth-led exuberance that has driven recent gains globally. Investors locally responded by trimming exposure to sectors considered vulnerable to tight valuations or interest rate risk.
Technical analysis also points to consolidation under current resistance levels. TA Securities noted that the 2024 high of 1,644 on the FBM KLCI remains a key resistance, while support zones lie around 1,564 (61.8% Fibonacci retracement), then 1,527 (50%) and 1,490 (38.2%).
What’s Next for Local Markets
Investors are waiting for upcoming U.S. inflation data and other macro indicators that could either reinforce or counterbalance Powell’s caution. Locally, the absence of strong domestic catalysts means the market may continue to trade sideways, especially as global interest rate expectations remain a swinging variable.
Sectors with more defensive earnings and lower sensitivity to rate shifts—such as utilities, select industrials, and consumer staples—may see relative outperformance, while high-multiple growth names could remain under pressure unless valuation support is clearly justified.
