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KUALA LUMPUR: Bursa Malaysia reversed its morning losses to close higher, supported by bargain hunting and sustained local investor interest.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.87 points, or 0.92 per cent, to 1,516.61 from Friday’s close of 1,502.74.
The index opened 9.55 points lower at 1,493.19 and fell as low as 1,488.89 in the morning session before trending up to close at its intraday high.
The broader market, however, was negative, with losers outpacing gainers 697 to 274, while 490 counters were unchanged, 932 untraded and 41 suspended.
Turnover surged to 3.09 billion units worth RM1.91 billion against 2.6 billion units worth RM3.37 billion on Friday.
UOB Kay Hian Wealth Advisors Sdn Bhd investment research head Mohd Sedek Jantan said the FBM KLCI recovered from an early dip below a key psychological level as markets reacted impulsively to the United States’ strikes on three Iranian nuclear facilities over the weekend.
He noted that while the initial sell-off reflected heightened geopolitical anxiety, the index rebounded strongly, supported by bargain hunting and sustained local investor interest.
“Historically, markets tend to absorb such shocks relatively quickly, with the direct impact of geopolitical risks often proving short-lived,” he told Business Times.
Sedek added that the ongoing Iran-Israel conflict has led to a spike in global oil prices, but the immediate pass-through to domestic inflation remains limited.
Meanwhile, he said, export-oriented stocks may derive temporary support from a strengthening ringgit, as currency appreciation can lower import costs and reflect greater investor confidence.
“However, this advantage may be offset if global demand slows or trade orders are delayed—developments that could weigh on revenue visibility and corporate earnings in the coming quarters,” he said.
Even though the ringgit was slightly weaker today, Sedek said the exchange rate is still considered stronger compared to last year’s average.
© New Straits Times Press (M) Bhd
