Bursa Malaysia extended its pullback on February 5, closing lower amid global jitters and profit-taking following a Wall Street tech sell-off. The FTSE Bursa Malaysia KLCI (KLCI) eased 11.80 points or 0.68% to 1,731.02 from the previous close of 1,742.82. The index opened at 1,745.82, reached a high of 1,747.18, and dipped to a low of 1,731.02 before closing. Trading volume was moderate, with decliners outnumbering gainers, reflecting cautious investor sentiment amid broader market consolidation.
Movers and Shakers
The KLCI’s decline was led by losses in heavyweights across financials, utilities, and industrials, amid global tech rout concerns. However, selective gains emerged in metals and power sectors. Top gainers included:
- Press Metal Aluminium: Up 8 sen to RM7.48 on demand strength.
- YTL Power International: Rose 6 sen to RM5.94 amid utility resilience.
- Sunway: Gained 4 sen to RM5.31 in construction plays.
- United Plantations: Added on palm oil stability.
- GuocoLand (Malaysia): Increased on property rebound.
Top losers focused on banks and chemicals:
- CIMB Group: Down 11 sen to RM8.84.
- Public Bank: Fell 6 sen to RM4.62.
- Maybank: Eased 4 sen to RM11.32.
- Tenaga Nasional: Slipped 4 sen to RM13.76.
- Petronas Chemicals: Dropped 6 sen to RM4.34.
High-volume actives included healthcare and cyclicals. Analysts maintain an end-2026 target of 1,810-1,850, supported by earnings growth and reforms.
Policy Changes Impacting KLCI and Malaysia’s Market
Domestically, Budget 2026’s focus on fiscal discipline includes SST expansion, e-invoicing, electricity tariff adjustments, dividend taxation, and carbon tax to broaden revenue and align with ESG goals. The 13th Malaysia Plan (13MP) emphasizes digitalisation, high-value industries, social mobility, and sustainability. The New Incentive Framework launches March 1, 2026, tying manufacturing incentives to outcomes like tax rates. GEAR-uP targets RM120 billion investments by 2028, aiding 4.3-4.5% GDP growth. OPR holds at 2.75% for stability.
Globally, US tariffs at 19% on Malaysia pose risks, but exemptions insulate 60% of exports, including semiconductors (40%), via the October 2025 US-Malaysia deal. IMF warns of AI hype, geopolitics (US-Iran), and inflation at 3.8%. Fed’s potential pause adds caution.
Other News Potentially Impacting KLCI or Malaysia’s Market
- Global Tech Rout: AI-driven sell-off in US and Asia impacts sentiment, with tech sector down 4.27%.
- Ringgit Rally: Hits near 8-year high below RM4/USD, reflecting reform efforts and boosting inflows.
- Manufacturing PMI: At 20-month high of 50.2 in January 2026, signaling expansion.
- Producer Prices: Fell 2.7% in December 2025, indicating contained inflation.
- Export Outlook: Moderates due to tariffs, but E&E and Visit Malaysia 2026 provide support.
- Sector Themes: AI/data centers position Malaysia as “China+1” hub; renewables M&A grows.
- Broader Risks: Geopolitical tensions (US-Iran) and Fed pauses add uncertainty, but reforms buffer.
The KLCI shows consolidation in early 2026. Reforms and ringgit strength support resilience, though global risks warrant caution.