Bursa Malaysia closed lower on February 13 amid pre-Chinese New Year profit-taking and US tech jitters, extending losses as broad-based selling weighed on sentiment despite a mixed regional performance. The FTSE Bursa Malaysia KLCI (KLCI) fell 11.31 points or 0.65% to close at 1,739.54 from Thursday’s close of 1,750.85. The index opened 2.96 points lower at 1,747.89 and moved between 1,738.94 and 1,751.38 during the session. At midday, it was down 8.43 points at 1,742.42. Trading volume stood at 2.43 billion units worth RM2.6 billion, down from 2.57 billion units worth RM2.79 billion previously. Market breadth was negative, with 709 decliners outpacing 407 gainers, 538 unchanged, 1,083 untraded, and 11 suspended. The broader indices also weakened, with the FBM Emas Index down 67.24 points to 12,738.20 and the FBM 70 Index down 21.95 points to 17,569.67.
Movers and Shakers
The KLCI’s decline was driven by broad-based selling across heavyweight counters, mirroring regional declines, with sectors like financial services, industrial products, and energy under pressure while plantations saw gains. Notable top gainers included:
- United Plantations: Up 56 sen to RM30.18 on plantation stability.
- Hong Leong Industries: Rose 36 sen to RM18.98 amid industrial recovery.
- IHH Healthcare: Gained 10 sen to RM8.83 in healthcare.
- MAG: Up 1 sen to 17.5 sen in actives.
- Tanco: Increased 3 sen to RM1.41.
Top losers concentrated in consumer goods and tech:
- Nestle: Down RM1.60 to RM109.00.
- Malaysian Pacific Industries: Fell RM1.22 to RM29.78 amid tech jitters.
- Hong Leong Financial Group: Lost 58 sen to RM22.10.
- Hong Leong Bank: Down 58 sen to RM24.12.
- Allianz: Slipped 48 sen to RM22.50.
Among heavyweights: Maybank -8 sen to RM12.06; Public Bank -9 sen to RM5.04; CIMB -7 sen to RM8.46; Tenaga Nasional -8 sen to RM13.96. High-volume actives: Zen Tech -0.5 sen; Hock Soon -6.5 sen to 53.5 sen; Zetrix -1.5 sen to 80.5 sen. Analysts maintain a year-end target of 1,772-1,880 points, supported by reforms and earnings growth.
Policy Changes Impacting KLCI and Malaysia’s Market
Domestically, 2026 is the “year of implementation” under the Madani government, shifting focus to delivery of fiscal reforms like subsidy rationalisation and tighter spending. The 13th Malaysia Plan (13MP) emphasizes digitalisation, high-value industries, social mobility, and sustainability. Budget 2026 includes SST expansion, e-invoicing, electricity tariffs, dividend taxation, and carbon tax to broaden revenue and support ESG goals. The New Incentive Framework launches March 1, 2026, tying manufacturing incentives to outcomes like tax rates or allowances. GEAR-uP targets RM120 billion investments by 2028, aiding 4.3-4.5% GDP growth. No OPR change expected in 2026 unless shocks emerge, with rates at 2.75%. E-waste import ban effective February 2026 disrupts battery recycling but drives black mass payables to 95-100%. RON95 subsidy savings projected at RM2.5 billion in 2026 from reduced leakage.
Globally, US tariffs at 19% on Malaysia pose risks, but exemptions insulate 60% of exports (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, but improving growth and earnings offer optimism. Global investors bet on Malaysia as a “rising star” amid diversification from US dollar weakness and tensions.
Other News Potentially Impacting KLCI or Malaysia’s Market
- 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 and sentiment.
- Manufacturing PMI: At 20-month high of 50.2 in January 2026, signaling expansion.
- Producer Prices: Fell 2.7% in December 2025, indicating low inflation.
- Export Outlook: 2025 boom cools in 2026 amid tariffs, but E&E, AI, and Visit Malaysia 2026 provide support.
- Sector Themes: AI/data centers reinforce Malaysia as “China+1” hub; renewables M&A grows; sukuk issuance high; industrial leads property market.
- Broader Risks: Geopolitical tensions (US-Iran), Fed pauses, trade frictions, AI hype; but reforms and alliances buffer.
The KLCI shows consolidation in early 2026. Reforms drive growth, though global volatility persists.