Bursa Malaysia ended higher on February 3, extending its rebound from last week’s pullback amid bargain hunting and positive regional sentiment. The FTSE Bursa Malaysia KLCI (KLCI) rose 7.38 points or 0.42% to close at 1,748.26 from Friday’s close of 1,740.88. The index opened at 1,756.09, hit a high of 1,757.51, and dipped to a low of 1,742.68 before recovering. Trading volume was around 302 million shares, with losers leading gainers 662 to 464, and 556 counters unchanged. This performance reflects resilience despite global uncertainties, supported by a stronger ringgit and Wall Street gains.
Movers and Shakers
The KLCI’s gains were driven by selective buying in tech, consumer, and industrials, offsetting pressures in other sectors. Top gainers included:
- Malaysian Pacific Industries: Up RM1.06 to RM33.06 on semiconductor demand.
- Nestle: Rose 20 sen to RM112.20 amid consumer strength.
- UWC: Gained 31 sen to RM4.40 in industrials.
- Hartalega Holdings: Advanced on healthcare rebound.
- Top Glove: Increased amid glove sector recovery.
Top losers were in telcos and plantations, with Maxis and Axiata declining. High-volume actives featured tech and consumer plays. Analysts project the KLCI to reach 1,810-1,850 by end-2026, fueled by 8.5% earnings growth and AI investments.
Policy Changes Impacting KLCI and Malaysia’s Market
Domestically, the 13th Malaysia Plan (13MP) emphasizes digitalisation, high-value industries, and sustainability, reinforcing reforms like SST expansion, e-invoicing, and carbon tax from Budget 2026. These support 4.0%-4.5% GDP growth, with GEAR-uP targeting RM120 billion in investments by 2028. OPR holds at 2.75%, aiding stability.
Globally, US tariffs (19% on Malaysia) pose risks, but exemptions for 60% of exports, including semiconductors (40%), and the October 2025 US-Malaysia deal soften impacts. IMF warns of AI hype and geopolitics, with inflation at 3.8%. Fed’s potential pause adds caution.
Other News Potentially Impacting KLCI or Malaysia’s Market
- Shaky Asian Markets: February started volatile due to AI de-rating and US tariff concerns, but KLCI’s pullback seen as constructive.
- Manufacturing PMI: Hit 20-month high at 50.2 in January 2026, signaling expansion amid easing costs.
- Export Outlook: 2025 boom cools in 2026 due to tariffs, but E&E and tourism (Visit Malaysia 2026) provide support.
- Producer Prices: Fell 2.7% in December 2025, indicating low inflation.
- Sector Themes: AI/data centers strengthen Malaysia as “China+1” hub; renewables M&A rises; plastics market grows to USD4.19B by 2026.
- Broader Risks: Geopolitical tensions, Fed pauses, and trade frictions loom, but reforms buffer impacts.
The KLCI demonstrates resilience in early 2026. Domestic strengths and policy continuity support upside, though global risks persist.