KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Malaysia’s manufacturing sector slipped back into contraction in February, while global markets reacted to escalating tensions in the Middle East following US and Israeli strikes on Iran.
Key Takeaways
Wall Street volatile after US–Israel strike on Iran
Bursa Malaysia slumps with over 1,000 stocks in the red
Malaysia PMI falls to 49.3, back below 50 contraction line
Stocks in focus: Optimax, Dagang NeXchange, OMH and others
US Market Recap: Oil and Gold Surge on Geopolitical Tensions
Nasdaq Composite rose 0.36% to 22,748.86
S&P 500 Index edged up 0.04% to 6,881.62
Dow Jones Industrial Average slipped 0.15% to 48,904.78
Markets initially dropped after US and Israeli forces launched coordinated strikes targeting Iran’s alleged nuclear and missile facilities. Iran retaliated with missile attacks on Israel and US-linked targets in the region.
Oil prices jumped as much as 12% before easing:
West Texas Intermediate crude traded at US$72.54 per barrel.
Safe-haven demand lifted gold:
Gold Futures +2% to US$5,352
Silver Futures -3.3% to US$90.195
Key Point: Geopolitical escalation drove safe-haven flows into gold while oil volatility spiked.
Bursa Malaysia: Broad-Based Selling
FTSE Bursa Malaysia KLCI fell 0.96% to 1,700.21.
More than 1,000 stocks ended lower as investors reduced risk exposure amid rising Middle East tensions.
Top movers:
Petronas Chemicals Group Bhd +13%
MR D.I.Y. Group (M) Bhd -7.26%
USD/MYR weakened to 3.927 as the US dollar strengthened.
Key Point: Escalating geopolitical risk triggered broad-based selling across Malaysian equities.
Malaysia Manufacturing Sector Cools
Malaysia’s manufacturing momentum faded in February.
S&P Global reported that the Malaysia Manufacturing Purchasing Managers’ Index (PMI) fell to 49.3, down from 50.2 in January.
The reading:
Slipped below the neutral 50 level
Marked the sharpest slowdown since June 2025
Suggests GDP growth of just under 5% based on historical comparisons
Key Point: Malaysia’s PMI returning below 50 signals renewed contraction in manufacturing activity.
Stocks to Watch
Optimax Holdings Bhd
Received Ministry of Health approval to offer ENT services at its Optimax Specialist Centre in Selangor.
Dagang NeXchange Bhd
Signed a three-year MOU with Majlis Amanah Rakyat to explore AI-driven digital transformation initiatives.
OM Holdings Ltd
Completed disposal of its 26% stake in Ntsimbintle Mining to Exxaro Resources Ltd.
Exsim Hospitality Bhd
Secured RM54.5 million turnkey contract for water park development works.
MISC Bhd
To charter two additional LNG carriers to PETRONAS LNG Ltd.
Velesto Energy Bhd
Secured five-year drilling contract from PETRONAS Carigali.
Public Packages Holdings Bhd
Appointed Dan Then Ikh Choo as new group CEO effective March 2.
Market Outlook
Markets are currently navigating three major pressures:
Escalating Middle East conflict
Energy price volatility
Softening domestic manufacturing data
While safe-haven flows support gold and oil-linked counters, broader equity sentiment remains cautious.
Overall theme: Rising geopolitical tensions and softer PMI data weigh on risk appetite across Malaysia and global markets.
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