Malaysia Stocks Snap 7-Day Slide, Weekly Loss Still Looms

Malaysia’s benchmark KLCI rose modestly to 1,713 around midday on Friday, breaking a seven-session losing streak as bargain hunters returned after the index touched a one-month low. A solid rise in U.S. stock futures also supported sentiment, following gains on Wall Street Thursday, as investors held on to hopes of a breakthrough in U.S.-Iran peace talks. On the trade front, Kuala Lumpur posted the largest surplus in three years during April, with both exports and imports in Malaysia hitting record highs. Producer manufacturing, retail trade, and commercial services drove the advance, with major movers including Petronas Chemical Group (4.6%), 99 Speed Mart Retail (3.0%), and Telekom Malaysia (2.2%). However, markets are poised for the second straight weekly decline, down around 1.6% so far, weighed by rising consumer price inflation in April and a fall from record high in foreign direct investment during Q1 2026.

Malaysia’s benchmark KLCI slipped for a third straight session to around 1,739 on Friday afternoon, nearing a two-week low and putting the market on track for its first weekly drop in five weeks. Sentiment weakened after a sharp slide in U.S. stock futures as President Trump departed Beijing following two days of talks with Chinese leader Xi Jinping, prompting investors to turn cautious ahead of the weekend. Locally, fresh data showed Malaysia’s FDI inflows fell in Q1 2026 from the record level in Q4, though inflows remained resilient despite persistent external uncertainty. Investors also largely brushed aside a slight upward revision to first-quarter GDP growth and a solid current account surplus, while awaiting April inflation and trade data due next week for clearer direction on the economy. Healthcare, industrial, and consumer-related shares led the decline, with major losses from Press Metal Aluminium (-1.6%), Petronas (-1.2%), IOI Corp. (-2.2%), and Kuala Lumpur Kepong (-3.2%).

Bursa Malaysia’s KLCI was little changed at around 1,722 by midday Friday, as strength in electronic technology, producer manufacturing, and transport offset weakness in healthcare and non-energy minerals. Traders tracked Middle East developments after U.S. President Donald Trump said Iran may have “loaded up its weaponry a little bit” during the two-week ceasefire, but added the U.S. military could eliminate it “in just a single day.” Despite the cautious tone, the benchmark is set for a second straight weekly advance, up about 1.6% so far, reaching its highest level in a month. Resilient domestic economic activity in Q1 2026 has helped underpin sentiment despite global uncertainties, particularly elevated oil prices tied to geopolitical tensions. Notable movers included Vitrox Corp. (10.4%), Press Metal Aluminium (3.4%), and MR. D.I.Y Group (1.8%), while United Plantations (-3.3%), Gamuda Bhd. (-2.2%), and Top Glove Corp. (-2.0%) declined.