Malaysian stocks continued to trade in the negative zone on Tuesday, amid a global AI selloff sparked by China's introduction of DeepSeek, a low-cost AI platform.

The benchmark FTSE Bursa Malaysia KLCI, the main gauge of Malaysian stocks, shed 6.28 points to end 0.40% lower at 1,552.69. The day range was between 1,544.87 and 1,557.44.

In economic news, Malaysia's producer price index edged up 0.5% year on year in December 2024, reversing a 0.4% drop in the preceding month, the Department of Statistics Malaysia. This index measures the average change in the prices charged by businesses in the manufacturing industry.

Malaysia's terms of trade gained 0.2% month-on-month to 117.7 points in December 2024, and climbed 2.4% from 115 points in December 2023, the Department of Statistics Malaysia said. The export unit value index edged up 1.1% during the month versus the month prior. Meanwhile, the import unit value index edged up 0.9% in December 2024, the DoSM said.

In corporate news, ES Sunlogy (KLSE:SUNLOGY) is eyeing 63 million ringgit ahead of its listing on the ACE Market. The mechanical and electrical engineering services provider plans to issue 140 million shares to the public, and an offer for sale of 70 million shares at 0.30 ringgit apiece.

Colform Group (KLSE:COLFORM) said the public portion of its initial public offering (IPO) on the ACE Market of Bursa Malaysia was oversubscribed by 41.82 times. The IPO comprises 114.4 million new shares and an offer for sale of 54 million existing shares.

Shares of DXN (KLSE:DXN) gained about 3% after its profit attributable to shareholders jumped to 92.8 million ringgit in the fiscal third quarter ended Feb. 28, from 78.4 million ringgit a year earlier.