FBM KLCI Retreats as Banking Profit-Taking Offsets Broader Market Strength - Business News
KUALA LUMPUR, July 21, 2026— The FBM KLCI ended lower on Monday as investors locked in profits on banking heavyweights following last week’s rally, although gains across the broader market signalled continued. . .
KUALA LUMPUR, July 21, 2026— The FBM KLCI ended lower on Monday as investors locked in profits on banking heavyweights following last week’s rally, although gains across the broader market signalled continued confidence in Malaysia’s economic outlook. The benchmark index fell 9. 16 points, or 0. 53 per cent, to close at1,722. 29from Friday’s1,731. 45, with the financial sector emerging as the biggest drag. Despite the decline, market breadth remained positive, with597 gainers outnumbering 460 losers, while the FBM Small Cap Index and ACE Market both advanced, reflecting continued buying interest beyond blue-chip counters. Banking Profit-TakingTechnology stocks led sectoral gains with a 2. 12 per cent rise as semiconductor-related counters rebounded from last week’s sell-off. Energy shares also gained on stronger crude oil prices, while transportation and logistics counters ended higher. Utilities, property, and telecommunications stocks, however, finished in negative territory. Globally, investor sentiment remained cautious as Wall Street extended its recent weakness amid concerns over lofty artificial intelligence-related valuations. The Dow Jones Industrial Average, S&P 500 and Nasdaq all ended lower, while South Korea’s KOSPI plunged as investors continued selling technology shares. Hong Kong and mainland Chinese equities, however, posted solid gains. Analysts said Malaysia’s stronger-than-expected5. 8 per cent second-quarter GDP growthcontinues to support the domestic market despite near-term profit-taking. They expect leadership to rotate towards technology, energy and smaller-cap stocks if regional sentiment stabilises. Looking ahead, energy counters are likely to remain supported by Brent crude prices hovering nearUS$89 per barrel, while banking stocks may continue consolidating after recent gains. Plantation stocks could also attract interest following firmer crude palm oil prices, although utilities and other interest rate-sensitive sectors may remain under pressure. #businessnews