Market Daily Report: Bursa Malaysia Ends Broadly Lower As Sentiment Dampened By Middle East Conflict

KUALA LUMPUR, March 2 (Bernama) -- Bursa Malaysia ended broadly lower on Monday as risk sentiment deteriorated sharply following renewed escalation in the Middle East conflict, triggering a widespread regional equity sell-off.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 16.40 points, or 0.95 per cent, to 1,700.21, from Friday’s close of 1,716.61. 

The benchmark index opened 27.97 points lower at 1,688.64 and moved between 1,684.28 and 1,703.90 during the session.

Market breadth was fragile, with 1,039 decliners outpacing 290 gainers, while 392 counters were unchanged, 904 counters were untraded and 23 suspended.

Turnover rose to 3.90 billion units valued at RM3.91 billion from Friday’s 3.53 billion units valued at RM5.53 billion. 

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the market reaction mirrored global risk-off behaviour, with investors reducing exposure to cyclical and high-beta assets amid concerns over potential supply disruptions, higher energy prices and rising geopolitical risk premiums.

He noted that technology stocks led the decline, with the Bursa Malaysia Technology Index falling 2.94 per cent, reflecting sensitivity to global growth uncertainty and tighter financial conditions. 

“Among FBM KLCI constituents, consumer and retail stocks came under heavy pressure, falling as much as 7.26 per cent, as fears of cost-push inflation and softer discretionary demand intensified amid rising energy prices and heightened geopolitical uncertainty,” he told Bernama.

In contrast, Mohd Sedek said basic materials stocks emerged as clear outperformers, gaining up to 13 per cent, supported by the sharp increase in energy prices linked to elevated risks around Middle East supply routes.

“This divergence highlights a clear sector rotation rather than indiscriminate selling, with investors repositioning towards commodities and inflation-hedging plays while trimming exposure to consumption- and growth-oriented sectors,” he added.

Meanwhile, SPI Asset Management managing partner Stephen Innes said for the week ahead, the direction of oil prices and the US dollar remained critical.

“If Brent stabilises around current levels and the US dollar rally fades, Bursa Malaysia could consolidate, supported by energy heavyweights and domestic institutional flows. However, if oil prices grind higher and the US dollar extends its gains, we are likely to see continued emerging market outflows.

“In that case, the local market would probably remain under pressure, moving broadly in tandem with regional risk sentiment rather than trading on local earnings drivers,” he told Bernama. 

At the time of writing, Brent crude jumped 8.08 per cent to US$78.76 per barrel. 

Regionally, Singapore’s Straits Times Index was down 2.09 per cent to 4,890.86, Hong Kong’s Hang Seng Index slumped 2.14 per cent to 26,059.85 and Japan's Nikkei 225 fell 1.35 per cent to 58,057.24. 

Among Bursa Malaysia’s heavyweights, Press Metal advanced eight sen to RM7.21, Hong Leong Bank climbed 12 sen to RM23.40, Maybank trimmed 24 sen to RM11.72, Public Bank shed eight sen to RM4.85, and CIMB shed 10 sen to RM7.94.  

On the most active list, Velesto gained one sen to 31.5 sen, Bumi Armada rose 3.5 sen to 35 sen, Hibiscus Petroleum jumped 29 sen to RM1.89, Zetrix AI slipped four sen to 78 sen, and Pharmaniaga eased 1.5 sen to 28 sen. 

Top gainers included Petron Malaysia which soared 44 sen to RM4.59, Petronas Chemicals increased 39 sen to RM3.39, Petronas Dagangan put on 28 sen to RM22.26, and UMS Integrated garnered 23 sen to RM4.60. 

As for the top losers, Nestle declined RM3 to RM106.90, Hong Leong Industries dipped RM1.18 to RM17.54, Fraser & Neave lost RM1.04 to RM33.90, and Malaysian Pacific Industries slid 96 sen to RM31.

Meanwhile, Bursa Malaysia said trading in the securities of Nova Pharma Solutions would be suspended with effect from 9.00 am on March 9, 2026, pursuant to Rule 8.02(2) of the LEAP Market Listing Requirements.

Source: Bernama