Europe’s economy is beginning to show clear signs of strain as the Iran conflict drives higher energy prices, weaker growth, and rising inflation , threatening to derail the region’s fragile recovery. Growth Outlook Deteriorates Across Europe Governments across Europe are cutting economic growth forecasts , as the war disrupts energy markets and business sentiment weakens. Major economies like Germany and Italy are reassessing projections, while policymakers brace for a prolonged period of slower expansion . The shock comes just as the region was recovering from previous crises, raising concerns of a renewed economic slowdown . Inflation Pressures Resurface The surge in oil and gas prices is expected to reignite inflation , forcing policymakers into difficult trade-offs. Central banks, including the European Central Bank, may need to: Shift toward tighter monetary policy Delay or reverse rate-cut expectations Officials warn the...
Market Daily Report: Bursa Malaysia Ends Lower As Conflicting Signals From West Asia Cloud Sentiment
KUALA LUMPUR, March 26 (Bernama) -- Bursa Malaysia reversed yesterday’s gains to close at an intraday low, with the benchmark index easing 0.34 per cent as investors tracked developments in West Asia while remaining cautious amid increasingly conflicting signals from both the United States (US) and Iran over potential peace negotiations.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 5.79 points to 1,710.89 from Wednesday’s close of 1,716.68.
The market bellwether opened 2.78 points higher at 1,719.46, and reached its highest level of 1,719.89 in early trade.
Market breadth was negative with losers beating gainers 568 to 482. A total of 569 counters were unchanged, 1,140 untraded and 77 suspended.
Turnover improved to 3.0 billion units worth RM3.14 billion from yesterday’s 2.90 billion units worth RM3.26 billion.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said oil price dynamics remained the key anchor for market direction.
He noted that Brent crude fell to around US$98 per barrel during the US trading session on expectations of possible de-escalation, before rebounding sharply reversing to about US$105 today as geopolitical risks resurfaced.
“Despite the softer close, the downside in the FBM KLCI remains contained and lacks broad-based selling pressure.
“The modest pullback should be interpreted as a consolidation phase following the previous session’s rebound, rather than a decisive shift towards risk-off positioning. Investors remain cautious but not defensive, with positioning still fluid and highly responsive to geopolitical developments,” he said.
Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the benchmark index is well supported around the 1,710 level and is expected to remain range-bound in the near term, as investors adopt a cautious stance amid escalating geopolitical tensions and weaker regional cues.
While news of a potential ceasefire proposal provides some hope, he said uncertainty remains elevated, keeping risk appetite subdued.
“As a result, the index is likely to trade within a tight range, with downside risks emerging if external sentiment deteriorates further. As such, we anticipate the FBM KLCI to trend within the 1,710-1,730 range towards the weekend,” he added.
Among heavyweights, Maybank was flat at RM11.44, Public Bank lost 11 sen to RM4.82, CIMB fell eight sen to RM7.81, Tenaga Nasional was down four sen to RM14.38, while IHH Healthcare rose three sen to RM9.02.
On the most active list, Sunway Healthcare jumped 17 sen to RM2.29, Zetrix AI shed one sen to 74 sen, Dialog surged 23 sen to RM2.32, AirAsia X fell eight sen to RM1.16, and Bumi Armada up half-a-sen to 32.5 sen.
Top gainers included Kuala Lumpur Kepong, which climbed 54 sen to RM20.14, Petronas Chemicals garnered 34 sen to RM5.80, Petronas Dagangan gained 32 sen to RM21.92, Batu Kawan put on 28 sen to RM19.88, and Gas Malaysia soared 23 sen to RM5.67.
As for top losers, BLD Plantation slid 20 sen to RM15.0, Gamuda and Petronas Gas fell 18 sen to RM3.98 and RM17.62, respectively, and Hong Leong Financial slipped 16 sen to RM19.40.
Source: Bernama
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