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.
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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