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.
PETRONAS Chemicals Group Bhd sank to its lowest level since April after reporting another quarterly loss, with analysts cautioning that the petrochemical giant faces a longer and more painful downturn ahead.
The latest quarter’s core net loss — excluding exceptional items — was the company’s largest since its 2010 listing, prompting consensus forecasts to now price in a full-year loss for PChem.
Hong Leong Investment Bank (HLIB) said the sector remains under heavy pressure due to China’s aggressive capacity expansion and sluggish downstream demand, a combination that continues to depress pricing across key product chains.
PChem plunged as much as 13% intraday to RM2.83 before closing 10% lower at RM2.92 on Monday, with over 34 million shares traded. The counter has shed nearly 40% year-to-date, cutting its market value to about RM23 billion.
Broker sentiment remains overwhelmingly bearish: 12 sells, four holds, and just three buys, Bloomberg data show. HLIB is the most bearish among 21 research houses, trimming its target price to RM2.06 and calling current valuations “lofty” given deteriorating fundamentals.
Maybank Investment Bank said olefins and derivatives — PChem’s core segment — are likely to remain stuck at multi-year low prices through 2026 as China continues its heavy supply rollout. The bank warns earnings may stay volatile as the downcycle has yet to bottom.
Key Takeaways for Investors
• Deepest core quarterly loss since listing
Signals that PChem’s margin pressure is structural rather than temporary.
• China remains the dominant headwind
Record capacity additions and slower demand are crushing global petrochemical spreads.
• Street turns decisively bearish
12 sell calls vs only 3 buys — one of the most negative profiles among KLCI heavyweights.
• Valuations still not cheap, analysts say
HLIB’s sharply lower TP of RM2.06 suggests further downside risk.
• Downcycle likely extends into 2026
Weak olefins pricing expected to persist for another 12–18 months.
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