The Singapore Straits Times Index (STI) fell 0.7%, dragging down regional sentiment. This was mainly due to weak US tech performance and disappointing China economic data, causing pressure on the Kuala Lumpur market opening.
Regional markets faced general pressure last week, with the Singapore Straits Times Index (STI) dropping 0.7% to 3,180 points. This negative sentiment partially spilled over into the Kuala Lumpur market, particularly at the start of the week. The subdued mood was primarily driven by investor concerns over the pace of China's property market recovery and profit-taking in US technology stocks ahead of the earnings season. Analysts suggest that given Malaysia's strong trade linkages with regional economies, investors are closely watching movements in Singapore and Hong Kong for signals about global economic health. If regional economic data continues to disappoint, the KLCI index might face increased downside risks, especially impacting cyclical sectors like logistics and manufacturing.
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