KUALA LUMPUR, May 21 (Bernama) -- Bursa Malaysia ended at its intraday low on Thursday as investor sentiment remained cautious amid ongoing foreign outflows, although the recent weakness may present bargain-hunting opportunities in fundamentally sound blue-chip counters. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 9.33 points, or 0.54 per cent, to 1,708.36, from yesterday’s close of 1,717.69. The benchmark index, which opened 3.74 points higher at 1,721.43, hit an intraday high of 1,722.50 in early trade before losing momentum for the rest of the day. Market breadth was negative, with losers outpacing gainers 656 to 508, while 565 counters were unchanged, 989 untraded and 32 suspended. Turnover fell to 3.49 billion units worth RM3.70 billion compared with 4.15 billion units worth RM4.29 billion on Wednesday.
Bank Negara Malaysia left its Overnight Policy Rate (OPR) unchanged at 2.75%, a widely anticipated decision that reflects confidence in Malaysia’s stable growth and muted inflation outlook.
The decision, announced after the Monetary Policy Committee’s first meeting of 2026, comes after a 25-basis-point rate cut in July 2025, the country’s first easing move in five years. Since then, policymakers have opted to stay on hold, judging current conditions to be supportive enough without further stimulus.
In its statement, BNM said the current policy stance remains appropriate, balancing economic expansion with price stability, while stressing that it will continue to assess risks to growth and inflation amid a volatile global backdrop.
Inflation dynamics remain favourable. The central bank expects headline inflation to stay moderate in 2026, helped by easing global cost pressures, while core inflation is projected to remain stable and close to its long-term average, signalling an absence of excessive demand-side pressures despite ongoing economic expansion.
Quick Summary
OPR held steady at 2.75%, in line with expectations
Policy seen as supportive of growth while maintaining price stability
Inflation outlook for 2026 remains moderate and well-contained
BNM remains data-dependent amid global uncertainty
BNM sees no urgency to adjust rates, as growth remains resilient and inflation risks are well under control.
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