KUALA LUMPUR (Jan 13): Malaysian stocks were broadly lower on Monday led by construction and property companies, while the country’s benchmark index fell to a five-month low.

Investors in Asia reacted poorly to the latest jobs data in the US that pointed to a robust economy, threatening the prospects of rate cuts by the Federal Reserve. The ringgit also depreciated along with other emerging Asian currencies under pressure from a strengthening US dollar.

“Malaysia bonds will see further sell-off by foreigners, and equities will track US market weakness, with the index constituents bearing the brunt,” BIMB Securities said.

The FBM KLCI was down 1.2% to 1,583.02 at the noon trading break, its lowest since Aug 8, 2024. All major stock indices in Asia were also in the red, led by the Taiwan Stock Exchange Weighted Index, amid a flight to safety.

The ringgit meanwhile slipped 0.3% against the US dollar on Monday. The indonesian rupiah was the biggest loser followed by the Thai baht. The Japanese yen, considered as a safe haven Asian currency, appreciated against the US dollar.

YTL Power International Bhd (KL:YTLPOWR), the biggest mover on the KLCI, slipped more than 6% amid continuing concerns over US restrictions on advanced chip exports affecting its data centre projects. The selldown also affected parent company YTL Corporation Bhd (KL:YTL).

The same set of concerns dragged on the Bursa Malaysia Construction Index that tracks 49 stocks in the sector, which is now entering its fourth consecutive day of decline. Gamuda Bhd (KL:GAMUDA), the sector’s most valuable stock, fell nearly 4%.

IOI Properties Group Bhd (KL:IOIPG) meanwhile dropped 4.5%, dragging on the Bursa Malaysia Property Index. The 95-stock index, now on a six-day losing streak, retreated over 2% on Monday, following recent gains from optimism over data centres.

A strict US sanctions on exports of chips will have long-term implications for Malaysia, "and the market will need to adjust to the additional risks”, said Choo Swee Kee, the chief investment officer of TA Investment Management Bhd that manages assets worth close to RM15 billion.

Malaysian technology stocks also extended their losses into the fourth day, as Inari Amertron Bhd (KL:INARI), Malaysia’s biggest tech stock by market capitalisation, edged 1% lower.

Investors are worried that the company, which provides outsourced semiconductor assembly and testing, could encounter intensifying challenges in the near term as the incoming Trump administration escalates trade tensions.

On the broader market, losers outnumbered gainers 884 to 180.

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