The FBM KLCI closed lower on Friday following a volatile trading session marked by last-minute selling pressure. The benchmark index slipped 4.12 points, or 0.25%, to finish at 1,672.31 after oscillating within a narrow eight-point range, between a low of 1,671.48 and a high of 1,679.47.

Market participants noted that the index opened in negative territory, recovered into positive territory midday, but ultimately succumbed to selling toward the close. Analysts attributed the cautious sentiment to ongoing concerns over elevated global bond yields, rising oil prices, persistent foreign selling, and geopolitical uncertainties.

Looking ahead, investors are expected to remain cautious and the index may continue trading within a defined range until clarity emerges from upcoming events. Among those, the Malaysian government’s Budget 2027 announcement on October 9 is seen as a significant near-term catalyst, with potential policy measures related to infrastructure, economic growth, and corporate sectors likely to influence market direction. Additionally, external factors such as U.S. monetary policy decisions and developments in global trade will continue to shape investor sentiment.

Despite near-term volatility, some analysts highlighted a more positive medium-term outlook supported by improving corporate earnings prospects, offering some reassurance amid the turbulent environment.

On the broader bourse, declining stocks outnumbered advancing ones by a ratio of approximately 1.6 to 1, with 677 counters falling compared to 436 gainers. Total market turnover reached 3.324 billion shares valued at RM2.745 billion. The subdued performance was largely driven by weakness in the technology and semiconductor sectors, which were particularly hard hit by the late-session selling.

Notable gainers included Nestle (M) Bhd, which rose RM1.96 to RM91.46, Ajinomoto (Malaysia) Bhd, up 38 sen at RM19.64, Pekat Group Bhd, advancing 24 sen to RM2.64, and Northern Solar Holdings Bhd, which gained 16 sen to RM1.18.

Conversely, major technology and semiconductor stocks ended lower. Malaysian Pacific Industries Bhd declined RM1.08 to RM43.50, MI Technovation Bhd fell 32 sen to RM5.81, Unisem (M) Bhd slipped 24 sen to RM4.50, and Pentamaster dropped 23 sen to RM5.18.

In foreign exchange markets, the ringgit weakened modestly, falling 0.15% against the U.S. dollar to 4.0863, while gaining slightly by 0.03% against the Singapore dollar at 3.1920.

Commodity prices showed notable increases as Brent crude advanced US$2.82, or 2.74%, to settle at US$105.90 per barrel, and West Texas Intermediate crude rose US$2.24, or 2.43%, to US$94.40 a barrel.

Regional equity markets presented a mixed picture. Japan’s Nikkei 225 gained 0.76% to 65,513.99, and South Korea’s Kospi climbed 0.9% to 7,080.92. In contrast, Hong Kong’s Hang Seng Index lost 0.29% to 24,761.13, Taiwan’s Taiex fell 0.28% to 48,024.60, and Singapore’s Straits Times Index decreased 0.49% to 5,681.85. Mainland China markets also closed lower, with the CSI 300 dropping 1.73% to 4,439.14 and the Shanghai Composite down 1.22% at 3,888.37.