Stocks in Malaysia Hit 12-month Low

Bursa Malaysia’s KLCI fell 0.6% to 1,602 in early Thursday trading, extending prior losses and hitting its lowest since November 2025. Persistent foreign selling, elevated U.S. Treasury yields, and higher oil prices pressured sentiment. Locally, caution was reinforced by the planned expansion of the KLCI from 30 to 50 constituents in phases beginning December, alongside risks of earnings disappointments amid higher-for-longer costs and supply-chain strains. Still, weakness was capped as traders awaited Budget 2027, to be tabled Friday, with hopes for clarity on fiscal priorities, infrastructure spending, and steps to support consumption. Tech, commercial services, manufacturing, and industrials led sector weakness, offset by strength in healthcare, energy minerals, and retail trade. Banks were among top laggards, including Hong Leong Bank (-2.1%) and CIMB (-1.9%). Other notable decliners included Kellington Group (-2.6%), Sime Darby Property (-1.6%), and Telekom Malaysia (-1.0%).

FKLCI decreased to 1603.00 Index Points, the lowest since September 2025. Over the past 4 weeks, FTSE Bursa Malaysia KLCI Index lost 6.48%, and in the last 12 months, it decreased 1.63%.

Bursa Malaysia’s KLCI extended gains into Friday afternoon, hovering near 1,729 and edging toward a two-month high. Sentiment was buoyed by flash data showing Malaysia’s GDP grew 5.8% in Q2, with resilient services and electronics exports helping cushion the drag from Middle East tensions. For H1 of the year, Malaysia’s economy expanded 5.6% yoy, accelerating from 4.5% in the corresponding period of 2025. However, gains were capped as U.S. stock futures tumbled, dragged lower by a sharp sell-off in chipmakers on Wall Street Thursday amid concerns over stretched valuations. Financials led the strength, with gains from Malayan Banking (1.6%), Hong Leong Bank (1.5%), and CIMB Group (1.2%). Energy and communications also supported the upside, highlighted by Petronas Chemicals’ 2.8% climb and Telekom Malaysia’s 0.9% rise. With the benchmark tracking a 2.1% advance so far, the market is on course for a third consecutive weekly gain, underscoring steady momentum amid improving macro signals.