Weekend Market Recap: Steady Gains Amid Easing Oil Volatility
Bursa Malaysia wrapped up the week on a positive note. The FTSE Bursa Malaysia KLCI (KLCI) posted modest weekly gains despite global uncertainties. The benchmark index closed at 1,712.45 on April 16 (up 0.76% for the week). This rebound was supported by selective buying in banking and energy sectors as oil prices stabilised following the US-Iran ceasefire developments. Brent crude hovered around US$85-88 per barrel, easing inflationary concerns.
Movers and Shakers
Banking heavyweights and energy plays anchored the week’s performance. Top performers included:
- Maybank and Public Bank — rose on improved risk appetite and stable ringgit.
- Petronas Chemicals (PCHEM) — gained steadily thanks to domestic feedstock advantage, shielding it from global oil swings.
- Gas Malaysia and Hengyuan Refining — benefited from relatively stable refining margins.
Consumer staples and some tech names lagged. High-volume actives focused on banking, energy, and selected cyclicals. Analysts remain constructive, keeping the year-end target at 1,772-1,880 points.
Policy Changes Impacting KLCI and Malaysia’s Market
No major new announcements this week. The government continues steady execution of the 13MP and the New Incentive Framework. Budget 2026 measures (SST expansion, e-invoicing, carbon tax) remain on track. GEAR-uP targets RM120 billion in investments by 2028 to support 4.3-4.5% GDP growth. OPR holds steady at 2.75%. Globally, US tariffs on Malaysia stay at 19%, with key exemptions for semiconductors (40% of exports) intact via the October 2025 deal.
Other News Potentially Impacting KLCI or Malaysia’s Market
The ringgit remained firm near its recent multi-year highs below RM4/USD, aiding foreign inflows. Malaysian energy companies like Petronas Chemicals, Gas Malaysia, and Hengyuan Refining continue to enjoy a competitive edge due to domestic gas feedstock, making them less sensitive to global oil price swings compared to pure upstream players. Q4 2025 GDP confirmed strong domestic momentum. The 2026 growth outlook holds at 4.3-4.5%. AI data centres, renewables M&A, and industrial property activity remain key growth drivers. Sukuk issuance stays robust. With the Iran ceasefire holding, Middle East risk premium has eased, though any breakdown could quickly push oil prices higher again.
Overall, the KLCI demonstrated resilience this week. Domestic buying and moderating oil prices provided support. External risks remain, but local fundamentals continue to anchor the market.