Bursa Malaysia ended the morning session in the red on April 30 as investor sentiment soured following news that the United Arab Emirates (UAE) will officially exit the OPEC+ alliance on May 1, Bernama reports.

The benchmark FBM KLCI fell 9.20 points to 1,720.40, as heavy losses in the financial and energy sectors outweighed gains in the technology and property counters. The UAE’s surprise departure, cited as a move to pursue national interests and expand production capacity independently, has added a fresh layer of volatility to an already fragile global energy market.

"The UAE’s surprise exit from OPEC added to supply uncertainty and lifted Brent to above $111 per barrel," noted CIMB Treasury and Markets Research. With tensions in West Asia remaining elevated due to stalled US-Iran talks, the market is bracing for unpredictable supply swings.

The departure of a core OPEC+ member triggered a broad sell-off across key Malaysian sectors, from energy & oil-related, with local players like Petronas Dagangan(KLSE: PETDAG) leading the losers, dropping 40 cents to MYR20.16 ($5.08), while Petronas Gas(KLSE: PETGAS) eased 10 cents to MYR17.86.

The financial index plummeted 127.92 points. Heavyweights including CIMB(KLSE: CIMB) is down 9 cents to MYR7.69, Maybank(KLSE: MAYBANK) is down 8 cents to MYR11.14, and Hong Leong Bank(KLSE: HLBANK) is down 16 cents to MYR22.63), dragged the index lower as investors reassessed regional credit risks. Some defensive stocks and tech players managed to buck the trend. Malaysian Pacific Industries(KLSE: MPI) jumped MYR1.38 to MYR38.88, while Nestle(KLSE: NESTLE) rose 10 cents to MYR102.40.

Market breadth remained negative, with 514 losers against 422 gainers. Total turnover stood at 1.93bn units valued at MYR1.51bn. As the UAE prepares to operate outside OPEC+ quotas from tomorrow, market participants are looking to the Energy Index, which managed a slight 2.43-point gain, to see if higher oil prices will eventually translate into better margins for Malaysian service providers, or if the supply shock will simply dampen global demand.