Latest News on FTSE Bursa Malaysia KLCI (KLCI) – March 6, 2026

Bursa Malaysia’s benchmark index ended the week slightly higher, driven by strong buying interest in Petronas Chemicals, which surged over 20% amid heightened oil prices from Middle East tensions, positioning it as a beneficiary due to domestic feedstock advantages. The FTSE Bursa Malaysia KLCI (KLCI) gained 4.86 points or 0.28% to close at 1,718.06 from Thursday’s close of 1,713.20. The index traded between 1,708.48 and 1,719.95, opening slightly lower but lifted by energy sector gains. At midday, it was up 4.19 points to 1,717.39. Trading volume was moderate, with gainers beating losers despite broader risk-off sentiment. This performance reflects caution amid US stocks’ sharp drop and surging oil prices, with WTI above $80 per barrel.

Movers and Shakers

The KLCI’s rise was primarily fueled by energy-related stocks amid oil price surges, offsetting weakness in smaller caps and cyclical sectors. Notable top gainers included:

• Petronas Chemicals (PCHEM): Jumped over 20% on cost advantages from domestic feedstock amid Iran crisis.
• Gas Malaysia Bhd (GASMSIA): Up 3.94% to RM5.01.
• Minho (Malaysia) Bhd (MINHO): Rose 3.85% to RM0.270.
• Hengyuan Refining Company Bhd (HENGYUAN): Gained 14.1% to RM1.540.
• Malaysian Pacific Industries Bhd (MPI): Up 0.3% to RM30.500.

Top losers were in consumer and retail:

• Mr DIY Group (M) Bhd (MRDIY): Down 7.26% to RM1.66.
• Malayan Banking Bhd (MAYBANK): Fell 2% to RM11.72.

High-volume actives included energy and industrials. Analysts project the KLCI to reach 1,772-1,880 by end-2026, 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 core inflation stable. 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.