KUALA LUMPUR, March 10 (Bernama) -- Bursa Malaysia rebounded to end higher today with the benchmark FBM KLCI reclaiming the 1,700 psychological level, supported by improved global sentiment after US President Donald Trump signalled a potential de-escalation of the Iran conflict, alongside Malaysia’s stronger Industrial Production Index (IPI) data. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 27.51 points, or 1.64 per cent, to 1,701.68 from yesterday’s close of 1,674.17. The benchmark index opened 10.68 points higher at 1,684.85, its lowest point today, and hit a high of 1,703.61 in the late afternoon session. Market breadth was positive, with gainers thumping losers 929 to 382. A total of 361 counters were unchanged, 982 untraded and 19 suspended. Turnover declined to 3.60 billion units worth RM3.75 billion from yesterday’s 5.52 billion units worth RM5.87 billion.
Key Takeaways:
PPI Eases: Malaysia’s Producer Price Index (PPI) for local production rose 0.3% year-on-year (YoY) in February 2025, down from 0.8% in January, signaling moderating cost pressures at the producer level.
Agriculture Drives Growth:
The agriculture, forestry and fishing sector continued to lead, up 15.2% YoY, driven by a 26.1% surgein perennial crops.
Mining Sector Contracts Sharply:
Mining output fell 9.7% YoY, deeper than January’s 1.3% drop, due to declines in crude petroleum (-9.8%) and natural gas (-9.4%).
Manufacturing Softens:
Manufacturing PPI fell 0.3% YoY, a smaller drop than January’s 0.6%.
Biggest declines:
Coke & refined petroleum products (-12.7%)
Computer, electronic & optical products (-3.2%)
Utilities:
Electricity & gas supply dipped 0.2%
Water supply remained resilient with a 2.9% increase.
Monthly Comparison:
On a month-on-month basis, PPI rose 0.1% in February, slowing from 0.3% in January.
Summary:
Malaysia’s February PPI points to slower producer inflation, reflecting weaker mining activity and a modest recovery in manufacturing. While agriculture remains a key support, the broad moderation suggests producers are facing mixed cost dynamics, offering a slightly calmer backdrop for inflation and pricing trends moving forward.
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