Malaysian Shares Rise Further After 2027 Budget Release

Bursa Malaysia’s KLCI surged 1.2% to 1,637 on Thursday afternoon, reversing prior losses and hitting a three-week high. Overnight gains on Wall Street lifted sentiment as traders assessed the implications of sweeping Democratic wins in the U.S. midterms on the Iran war, President Trump’s policy agenda and the AI trade. Locally, Bank Negara Malaysia (BNM) held its overnight policy rate at 2.75% for an eighth month, in line with expectations. Manufacturing activity also grew at its fastest pace in six months last month, supported by stronger output and new orders. However, gains faced some restraint from slowing economic growth, with Q3 GDP expansion easing to a one-year low of 5.3%. Financials and consumer-related sectors led the rally, offsetting declines in energy minerals, healthcare, tech, and manufacturing. Major banks advanced, including Malayan Banking (3.0%), Public Bank (4.2%), and Hong Leong Bank (4.9%. Other notable gainers included KPJ Healthcare (3.8%) and Nestle (2.4%).

Bursa Malaysia’s KLCI rose 0.4% to 1,614 in Monday morning trade, extending last week’s momentum after the government unveiled its 2027 budget. Kuala Lumpur plans MYR 460 billion in spending, broadening welfare aid and tax relief while retaining fuel subsidies to ease household pressures. Officials project slower growth of 4.2–5.2% next year and inflation at 1.8–2.8%, though the fiscal deficit is seen narrowing to 3.3% of GDP from a revised 3.6%. Recent data showed August industrial output and retail sales accelerating, with unemployment edging lower. Meanwhile, U.S. stock futures advanced after President Trump said he is considering joining Saudi Arabia in retaliation against Tehran-backed Houthis following a deadly strike on Riyadh’s main airport. Transport, communication, and financials led gains, while consumer services, retail, and healthcare fell. Lenders advanced, including Maybank (1.2%) and CIMB (1.0%). Other major movers were Sunway (2.0%), MISC (1.6%), and Axiata (1.2%).

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%).