Bursa Malaysia’s key index closed lower on Tuesday as traders locked in profits following three consecutive sessions of gains.
Banking and oil and gas counters led the decline, reversing some of the momentum that had lifted the market earlier in the week.
The pullback reflects a shift in sentiment after a broad rally driven by improved investor confidence.
The previous session’s gains were partly fueled by softer-than-expected US labour market data, which had sparked optimism across Asian equities.
However, the positive reaction to the US figures appears to have run its course, with investors opting to take chips off the table.
The banking sector, which had been a primary driver of the recent uptick, faced particular selling pressure.