Bursa Malaysia opened higher on March 5, tracking positive overnight Wall Street performance as easing oil prices and upbeat economic data soothed concerns over the US-Iran geopolitical crisis. The FTSE Bursa Malaysia KLCI (KLCI) rose 14.98 points or 0.88% to close at 1,713.20 from the previous close of 1,698.22. The index opened 8.03 points higher at 1,706.25 and traded between a low of 1,702.08 and a high of 1,715.20. At 9.16am, it was up 3.86 points to 1,702.08. Trading volume stood at 233.52 million shares worth RM159.55 million in early trade, with gainers outnumbering losers. This rebound reflects bargain-hunting after the previous day’s sell-off, with banking heavyweights in focus due to favourable US-Malaysia rate differential and a stronger ringgit benefiting banking assets.
Movers and Shakers
The KLCI’s gains were supported by buying in consumer goods, tech, and plantations, offsetting broader caution. Notable top gainers included:
- Nestle: Up RM1.50 to RM108.50 on consumer demand.
- Malaysian Pacific Industries: Rose 56 sen to RM31.06, benefiting from semiconductor recovery.
- United Plantations: Gained 16 sen to RM30.36 amid palm oil stability.
- Malayan Cement: Added 14 sen to RM8.26 in construction plays.
- Heavyweights: Maybank rose 4 sen to RM11.70; Public Bank and IHH Healthcare each up 4 sen to RM4.88 and RM9.00.
Top losers included:
- Ajinomoto: Down 8 sen to RM13.40.
- Hong Leong Industries: Fell 8 sen to RM17.30.
- TNB: Slipped 6 sen to RM14.10.
High-volume actives included NexG (up 3.5 sen to 30.5 sen), Capital A (up 0.5 sen to 50.5 sen), and Bumi Armada (down 0.5 sen to 35 sen). Crude oil prices expected to stabilise above US$80 per barrel, supporting upstream oil and gas players like Hibiscus. 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, emphasizing delivery of fiscal reforms like subsidy rationalisation and tighter spending. The 13MP prioritizes digitalisation, high-value industries, and sustainability, with Budget 2026 featuring SST expansion, e-invoicing, electricity tariffs, dividend taxation, and carbon tax. The New Incentive Framework launches March 1, 2026, tying manufacturing incentives to outcomes. GEAR-uP targets RM120 billion investments by 2028, aiding 4.3-4.5% GDP growth. OPR holds at 2.75% with no changes expected unless shocks emerge. E-waste import ban effective February 2026 disrupts battery recycling. RON95 subsidy savings projected at RM2.5 billion in 2026.
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 alliances cushion impacts. Global investors bet on Malaysia as a “rising star” amid diversification from US dollar weakness.
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; risks from sectoral tariffs.
- 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 resilience in early 2026. Reforms drive growth, though global volatility persists.