Bursa Malaysia ended lower on February 12 amid profit-taking after recent gains, tracking mixed regional cues and a Wall Street rebound in tech stocks. The FTSE Bursa Malaysia KLCI (KLCI) eased 5.54 points or 0.32% to close at 1,750.85 from Wednesday’s close of 1,756.39. The index opened 0.12 points lower at 1,755.09, reached a high of 1,758.06, and dipped to a low of 1,748.30. Trading volume was moderate, with decliners outpacing gainers, indicating consolidation ahead of the Chinese New Year break.
Movers and Shakers
The KLCI’s slight decline was due to profit-taking in banking counters, with sentiment cautious despite a firmer ringgit. Top gainers included:
- AXIATA: Up 5 sen to RM2.39 on telecom resilience.
- SIME: Rose 4 sen to RM2.16 in industrials.
- GAMUDA: Gained 7 sen to RM4.10 amid construction strength.
- PBBANK: Added 7 sen to RM4.97 on banking support.
- Press Metal Aluminium: Showed strength in metals.
Top losers were in healthcare and consumer goods, with IHH and Nestle declining. High-volume actives featured cyclicals and healthcare plays. Analysts maintain an end-2026 target of 1,772-1,880 points, driven by reforms and foreign inflows.
Policy Changes Impacting KLCI and Malaysia’s Market
Domestically, 2026 is the “year of implementation” under the Madani government, focusing on delivery of fiscal reforms including subsidy rationalisation, tighter spending, and the New Incentive Framework launching March 1, 2026, tying manufacturing incentives to outcomes. The 13MP emphasizes digitalisation, high-value industries, and sustainability, with Budget 2026 including SST expansion, e-invoicing, electricity tariffs, dividend taxation, and carbon tax. GEAR-uP targets RM120 billion investments by 2028, aiding 4.3-4.5% GDP growth. OPR holds at 2.75%.
Globally, US tariffs at 19% on Malaysia pose risks, but exemptions insulate 60% of exports (semiconductors 40%) via October 2025 deal. IMF warns of AI hype, geopolitics (US-Iran), and inflation at 3.8%. Fed’s potential pause adds caution, but alliances and trade deals cushion impacts.
Other News Potentially Impacting KLCI or Malaysia’s Market
- E-Waste Import Ban: Effective February 2026, disrupting battery recycling supply chains and driving black mass payables to 95-100%, impacting metal markets.
- RON95 Subsidy Savings: Projected RM2.5 billion savings in 2026 from reduced leakage, with Anwar appreciating vigilance against foreign misuse.
- Q4 2025 GDP: Expanded at fastest pace in over a year, supported by domestic demand; full data imminent.
- Ringgit Rally: Hits 5-8 year high below RM4/USD, boosting inflows.
- Manufacturing PMI: At 20-month high of 50.2 in January 2026.
- Producer Prices: Fell 2.7% in December 2025.
- Export Outlook: Cools amid tariffs, but E&E, AI, Visit Malaysia 2026 support.
- Sector Themes: AI/data centers as “China+1” hub; renewables M&A; hospitality lift from VM2026; industrial leads property market.
- Broader Risks: Geopolitical tensions, Fed pauses, trade frictions; but reforms buffer.
The KLCI shows resilience in early 2026. Reforms drive growth, though global volatility persists.