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Oil Volatility Keeps Markets Cautious
Thu, 12-Mar-2026 07:41 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI (+0.42%) edged higher on Wednesday as sentiment improved on expectations that major economies may release strategic oil reserves to ease surging energy prices. Bargain-hunting activities also emerged following Monday’s sharp sell-off, while declining crude oil prices helped alleviate concerns over a potential spike in global inflation. Market breadth was positive, with 619 advancers outpacing 436 decliners. Sector-wise, Energy (+1.91%), Healthcare (+1.37%), and Property (+1.11%) led gains, while Technology (-0.64%) was the only laggard.

Global Markets. Wall Street ended mixed on Wednesday, with the Dow (-0.61%) and S&P 500 (- 0.08%) closing lower, while the Nasdaq (+0.08%) ended marginally higher as investors monitored developments in the Iran conflict and assessed the latest inflation data. Meanwhile, oil prices remained volatile after the International Energy Agency (IEA) agreed to release 400 million barrels of strategic reserves, the largest in its history, to ease supply disruptions linked to the ongoing Middle East conflict and the blockage of the Strait of Hormuz (The Edge). In Europe, the STOXX 600 (-0.59%) closed lower, with most regional bourses and sectors ending in negative territory (CNBC). Asian equities closed mixed, with the Nikkei 225 (+1.43%) and Shenzhen Composite (+0.78%) posting gains, while the Hang Seng (-0.24%) ended lower.

Market Outlook. Global sentiment is likely to remain cautious as the U.S.–Iran conflict continues to raise concerns over disruptions to global energy supply. The Strait of Hormuz remains largely impassable amid ongoing attacks on three vessels. Although the International Energy Agency approved a record release of 400 million barrels from strategic reserves to stabilise markets, oil prices remain volatile as supply risks persist. Oil prices have hovered near the $90 per barrel level, keeping inflation concerns elevated. Against this backdrop, markets are likely to trade with heightened volatility as investors continue to monitor geopolitical developments and their implications for global growth and inflation.

Sector focus. Maintain a bias towards export-oriented sectors amid geopolitical risks and currency volatility, while energy and plantation sectors may benefit from higher oil prices. Meanwhile, in a volatile environment, defensive yield plays such as REITs and utilities remain attractive.

 

FBMKLCI Technical Outlook

Technical Commentary: The FBM KLCI continues to trade above its prevailing uptrend line. This suggests that the broader bullish structure remains intact for now, although confirmation from the next few closing sessions is still required. As long as the index holds above the 1,685–1,690 support zone, the prevailing uptrend is likely to remain intact. A decisive break below this level would weaken the technical structure and may signal a deeper corrective phase.

 

Company News (source: various)

NexG Bhd said six directors have resigned with immediate effect, resulting in the reinstatement of executive chairman and CEO Datuk Abu Hanifah Noordin’s executive powers. (The Edge)

Ann Joo Resources Bhd’s joint venture will sell a 60.1-acre industrial land in Gurun, Kedah for RM117.81m cash. The group expects to receive RM65.4m from the disposal to repay loans and fund working capital. (The Edge)

Knusford Bhd is disposing of a 0.304-hectare freehold land in Setapak, Kuala Lumpur for RM7m, expecting to record a net gain of RM4.55m. Proceeds will be used for working capital. (The Edge)

T7 Global Bhd has secured a two-year contract to provide hydraulic workover services for EnQuest’s well campaign. The contract value was not disclosed. (The Edge)

Widad Group Bhd is appealing against a High Court decision over payment claims linked to the Langkasuka development project in Langkawi. (The Edge)

Aizo Group Bhd’s 60%-owned unit Uniqa (M) Sdn Bhd has obtained a one-year remittance services licence from Bank Negara Malaysia, marking its entry into the cross-border payment sector. (The Edge)
 

Sentiment: Neutral
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Market Mover
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Currency Buy Rates (RM) Sell Rates (RM)
USD 3.903957 3.935381
EUR 4.541033 4.545818
CNY 0.569785 0.570391
HKD 0.498988 0.502508
SGD 3.066229 3.087922