Indonesian markets came under heavy pressure as escalating Middle East tensions triggered fresh capital outflows, pushing the rupiah to historic lows and sending equities toward bear-market territory. Key Takeaways Rupiah falls past Asian Financial Crisis levels Jakarta Composite Index drops 5%, nearing bear market Oil surge adds inflation pressure to net oil importer Investor confidence already shaken by ratings outlook cuts Rupiah Breaks Historic Support Indonesian rupiah weakened 0.6% to 17,015 per US dollar, slipping below its January record low and breaching levels last seen during the Asian Financial Crisis. The currency is now down 1.8% year-to-date, ranking among Asia’s worst performers. Key Point: The rupiah’s break below crisis-era levels signals deep investor anxiety. Stocks Slide Toward Bear Market Jakarta Composite Index tumbled 5%, putting the benchmark on track to enter a bear market (down 20% from recent highs). Indonesia’s equities are also...
Bank Negara Malaysia kept its policy rate unchanged as global markets swung on rising oil prices, while Bursa Malaysia staged a rebound on bargain hunting despite geopolitical uncertainty.
Key Takeaways
US stocks tumbled as oil surged 7.5% on Middle East tensions
FBM KLCI climbed 0.88% on bargain hunting
Bank Negara maintained OPR at 2.75%
Inflation remains moderate, giving BNM room to stay neutral
Wall Street: Oil Spike Triggers Selloff
Nasdaq Composite 22,669.91 (-0.6%)
S&P 500 Index 6,814.48 (-0.8%)
Dow Jones Industrial Average 47,890.61 (-1.7%)
Crude Oil Futures jumped 7.5% to US$80.24 per barrel after reports that Iran struck an oil tanker, escalating fears of supply disruption.
The Strait of Hormuz — which handles roughly 20% of global oil supply — remains the focal point of risk following US-Israel airstrikes on Iran.
Cryptocurrencies also retreated:
Bitcoin -3%
Ethereum -3.7%
Key Point: Oil volatility is reviving inflation fears and pressuring global risk assets.
Bursa Malaysia: Bargain Hunting Lifts KLCI
FTSE Bursa Malaysia KLCI 1,713.20 (+0.88%)
Top movers:
Press Metal Aluminium Holdings Bhd +3.38%
MR D.I.Y. Group (M) Bhd -1.16%
USD/MYR: 3.9411
Investors selectively accumulated beaten-down counters amid a regional rebound, though sentiment remains cautious due to ongoing geopolitical developments.
Key Point: Local equities showed resilience as domestic fundamentals remain intact.
BNM Holds OPR at 2.75%
Bank Negara Malaysia kept the Overnight Policy Rate unchanged at 2.75%.
Inflation backdrop:
Headline inflation: 1.6%
Core inflation: 2.3%
Despite Middle East tensions and global volatility, policymakers believe the current rate stance appropriately balances growth and price stability.
Key Point: Moderate inflation allows BNM to stay steady despite rising external risks.
Stocks to Watch
NexG Bhd
Boardroom battle intensifies after Raya Aviation became largest shareholder; executive chairman suspended as factions push for an EGM.
British American Tobacco Malaysia Bhd
Managing director transition effective August 1.
Paramount Corporation Bhd
Targets RM1.2 billion in 2026 property sales with RM1.1 billion launches planned.
Sunview Group Bhd
Secured RM289.71 million EPCC contract for a solar project in Bintulu.
EPB Group Bhd
Proposed transfer from ACE Market to Main Market by Q3 2026.
Poh Huat Resources Holdings Bhd
Proposal to pay at least 50% of independent directors’ fees in shares to be voted on April 15.
Market Outlook
Markets remain driven by:
Oil price volatility
Inflation expectations
Central bank policy signals
While Wall Street reacted sharply to the oil spike, Bursa Malaysia demonstrated selective resilience supported by steady monetary policy and contained inflation.
Overall theme: BNM holds steady as oil-driven uncertainty clouds global markets, but local equities find support on dips.
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