Bursa Malaysia closed lower on March 13 amid profit-taking after the previous day’s rebound, with cautious sentiment persisting due to lingering Middle East tensions and oil price volatility. The FTSE Bursa Malaysia KLCI (KLCI) eased 8.45 points or 0.49% to close at 1,702.56 from yesterday’s close of 1,711.01. The index opened at 1,708.12, traded in a narrow range between 1,699.34 and 1,709.85, and finished near the session low as late selling emerged. Trading volume was moderate at 2.85 billion units, with decliners outnumbering gainers.
Movers and Shakers
The KLCI’s decline was driven by profit-taking in banking and consumer heavyweights, while selective buying in energy and plantations provided limited support. Top gainers included:
- Petronas Chemicals (PCHEM): Up 12 sen on stable feedstock advantage.
- Gas Malaysia (GASMSIA): Rose 8 sen amid energy sector interest.
- Hengyuan Refining: Added 5 sen on refining margins.
- United Plantations: Gained 4 sen with CPO firmness.
Top losers were led by:
- Maybank: Down 18 sen to RM11.52.
- Public Bank: Fell 12 sen to RM4.76.
- Nestle: Slipped 22 sen to RM111.48.
- Malaysian Pacific Industries (MPI): Eased 10 sen to RM30.40.
High-volume actives featured energy plays and cyclicals. Analysts keep the year-end target at 1,772-1,880 points, supported by reforms and earnings growth.
Policy Changes Impacting KLCI and Malaysia’s Market
No fresh domestic announcements today. The focus remains on the ongoing “year of implementation” under the Madani government, with the New Incentive Framework (effective since March 1) tying manufacturing incentives to outcomes and the Capital Market Masterplan 2026–2030 targeting RM6.3 trillion market size by 2030. Budget 2026 continues with SST expansion, e-invoicing, and carbon tax measures. GEAR-uP targets RM120 billion investments by 2028, supporting 4.3-4.5% GDP growth. OPR stays at 2.75%. Globally, US tariffs (19% on Malaysia) persist with exemptions for 60% of exports (semiconductors 40%) via the October 2025 deal, but no new developments reported.
Other News Potentially Impacting KLCI or Malaysia’s Market
- Ringgit: Stable near 5-8 year high below RM4/USD, supporting inflows.
- Manufacturing PMI & Inflation: January PMI at 20-month high of 50.2; producer prices fell 2.7% in December 2025, signalling contained inflation.
- Export & GDP Outlook: Q4 2025 GDP expanded at the fastest pace in over a year; 2026 growth forecast steady at 4.3-4.5% despite external risks.
- Sector Themes: AI/data centres as “China+1” hub; renewables M&A; industrial property leads; sukuk issuance strong.
- Broader Risks: Middle East tensions and oil volatility remain watchpoints, but domestic reforms and potential oil reserve releases provide buffers.
The KLCI shows resilience with selective buying. Domestic fundamentals and policy continuity support stability amid external volatility.