Bursa Malaysia reversed earlier losses to end at its intraday high on February 6, supported by late buying in selected heavyweights amid a mixed regional performance. The FTSE Bursa Malaysia KLCI (KLCI) increased 1.81 points or 0.11% to close at 1,732.83 from the previous close of 1,731.02. The index opened 1.79 points lower at 1,729.23, hit an intraday low of 1,723.91, and moved in a narrow range before gaining momentum at the close. Trading volume decreased to 3.02 billion units valued at RM3.10 billion, down from 3.30 billion units valued at RM3.25 billion the previous day. Market breadth was negative, with losers leading gainers 683 to 408, and 544 counters unchanged.
Movers and Shakers
The KLCI’s modest gain reflected internal rotation and consolidation, outperforming regional peers in a risk-off environment driven by global AI investment concerns following earnings from Alphabet and Microsoft. Top gainers included:
- Petronas Dagangan: Up 20 sen to RM20.50 on energy sector support.
- Perak Corporation: Rose 10.5 sen to 68.5 sen amid broader market recovery.
- Petronas Gas: Gained 10 sen to RM18.20 in utilities.
- Solarvest: Added 10 sen to RM2.37 on renewables interest.
- Life Water: Increased 10 sen to RM1.57 in consumer plays.
Top losers were concentrated in tech and consumer goods:
- Malaysian Pacific Industries: Down RM1.60 to RM30.40 amid global tech rout.
- Fraser & Neave: Fell 94 sen to RM32.94.
- Dutch Lady Milk Industries: Dropped 46 sen to RM33.00.
- Nestle: Down 30 sen to RM112.30.
- Allianz Malaysia: Slipped 28 sen to RM22.20.
Among heavyweights: Public Bank (+7 sen to RM4.97), IHH Healthcare (+3 sen to RM8.80), CIMB (-6 sen to RM8.46), Tenaga Nasional (-4 sen to RM13.94), Maybank flat at RM11.94. High-volume actives: Zetrix AI (-1 sen to 68.5 sen), Tanco (-1 sen to RM1.33), AmBest Group (+9.5 sen to 34.5 sen), Pharmaniaga (+0.5 sen to 29.5 sen), Velesto Energy flat at 30 sen. Analysts note the recovery as a time correction, with domestic demand and policy continuity providing stability. End-2026 target remains 1,810-1,850 on earnings growth.
Policy Changes Impacting KLCI and Malaysia’s Market
Domestically, Budget 2026 maintains fiscal discipline with SST expansion, e-invoicing, electricity tariff adjustments, dividend taxation, and carbon tax to broaden revenue and support ESG goals. The 13MP emphasizes digitalisation, high-value industries, and sustainability. 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%.
Globally, US tariffs (19% on Malaysia) risk softening exports, but exemptions insulate 60% (semiconductors 40%) via October 2025 deal. IMF warns of AI hype, geopolitics (US-Iran), inflation at 3.8%. Fed pause adds caution. New alliances, trade deals cushion impacts.
Other News Potentially Impacting KLCI or Malaysia’s Market
- 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, Visit Malaysia 2026 support.
- Sector Themes: AI/data centers as “China+1” hub; renewables M&A; sukuk issuance high.
- Broader Risks: Geopolitical (US-Iran), Fed pauses, trade frictions, AI hype; but alliances, reforms buffer.
The KLCI shows resilience in early 2026. Reforms drive growth, though global volatility persists.