Malaysia Market Review: The FBM KLCI extended its decline, falling -0.96% as escalating Middle East tensions and renewed US tariff concerns weighed on regional sentiment. The selloff was broad-based, although energy stocks outperformed on higher oil prices. Meanwhile, the Ringgit weakened in line with regional currencies as the US dollar strengthened following the US-Israel strike on Iran. Market breadth was negative, with 295 decliners outpacing 1037 advancers. Sector-wise, Energy (+3.24%) and Industrial Products (+0.33%) led gains, while Healthcare (-2.57%) and Technology (-2.85%) were the main laggards.
Global Markets. Wall Street ended broadly flat on Monday, with the Dow (-0.15%), Nasdaq (+0.36%) and S&P 500 (+0.04%), as investors engaged in selective dip-buying following the U.S. and Israel strikes on Iran over the weekend. Oil prices surged amid heightened concerns over potential supply disruptions in the Middle East. Europe’s STOXX 600 (-1.61%) edged lower as geopolitical tensions weighed on broader risk sentiment after the coordinated attacks on Iran. Asian markets also ended lower in line with the cautious global tone, with the Nikkei 225 (-1.35%) and Hang Seng (-2.14%) edging lower while the Shanghai Composite closed (+0.47%) higher.
Market Outlook. Global sentiment remains fragile amid escalating tensions involving Iran, raising concerns over potential disruptions to Middle East crude supply, particularly around the Strait of Hormuz. Although OPEC+ has signalled a modest output increase, it may not fully offset supply risks if tensions intensify. Oil price volatility has increased, with upside risks potentially reviving inflation concerns and delaying rate cuts. For Malaysia, firmer crude prices may support energy counters, but a stronger USD could pressure the ringgit and dampen broader risk appetite. As such, the FBM KLCI is likely to trade range-bound in the near term amid heightened geopolitical and currency volatility.
Sector focus. Pivot towards the energy and export-oriented sectors amid heightened geopolitical risk and rising crude price volatility. Energy counters stand to benefit from firmer oil prices and improved earnings leverage, while USD-linked exporters could gain from ringgit weakness through translation and competitiveness advantages. In addition, banking and REITs remain attractive for their resilient earnings visibility and compelling dividend yields, offering defensive positioning within a volatile external environment.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI has turned decisively weaker after breaking below the 1,720-support level, confirming a short-term trend reversal from its recent consolidation range. Indicators remained negative, with the MACD line trading below the signal line and the RSI below 50. Resistance is located at 1,714, while support is envisaged around 1,680.
Company News (source: various)
Top Glove Corporation Bhd has appointed its founder's son, Lim Jin Feng, together with executive director Ng Yon Lin, to be joint managing directors to succeed Lim Cheong Guan, who will be retiring from the post on March 31 after 20 years of service with the group.
Genting Malaysia Bhd said its long-time president Datuk Seri Lee Choong Yan has been redesignated as a senior adviser, and is slated to step down from the new role in May.
Mi Technovation Bhd is considering a separate listing of its semiconductor material business on the Singapore Exchange.
PPB Group Bhd does not expect further impairments on its 18.8%-owned associate Wilmar International Ltd, after fully writing down the goodwill component of its investment.
Optimax Holdings Bhd has obtained approval from the Ministry of Health to offer ear, nose and throat (ENT) services at its flagship ambulatory care centre Optimax Specialist Centre at the Atria Shopping Gallery, Selangor.
Dagang NeXchange Bhd has entered a memorandum of understanding (MOU) with Majlis Amanah Rakyat (Mara) for a three-year collaboration to explore artificial intelligence-driven digital transformation initiatives.
OM Holdings Ltd has completed the sale of its 26% stake in Ntsimbintle Mining Proprietary Ltd, which owns a 50.1% stake in the operator of the Tshipi Borwa mine in South Africa’s Kalahari Manganese Field, to South Africa-based mining company Exxaro Resources Ltd.
EXSIM Hospitality Bhd has clinched a RM54.5 million turnkey contract for water park development works from Aqua Empire Sdn Bhd.
MISC Bhd is going to charter two additional liquefied natural gas (LNG) carriers for PETRONAS LNG Ltd under a charter contract it secured last month.
Velesto Energy Bhd has been awarded a five-year drilling contract by PETRONAS Carigali Sdn Bhd. Its NAGA 2 rig is undertaking drilling operations under the new agreement, which began last month.
PTT Synergy Group Bhd has appointed Dan Then Ikh Choo as its new group CEO, effective March 2.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.910377 | 3.941921 |
| EUR | 4.603841 | 4.608755 |
| CNY | 0.570110 | 0.570719 |
| HKD | 0.500128 | 0.503660 |
| SGD | 3.077302 | 3.099068 |