KUALA LUMPUR, June 5 (Bernama) -- Bursa Malaysia closed higher, with the benchmark index rising 0.60 per cent as bargain-hunting persisted following the recent sell-off, despite weaker performances across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 10.17 points to 1,693.43 from Thursday's close of 1,683.26. The benchmark index opened 3.19 points higher at 1,686.45 and traded between 1,684.36 and 1,698.53 during the trading session. However, broader market sentiment remained negative, with losers outnumbering gainers 666 to 477. A total of 574 counters were unchanged, 958 untraded and 12 suspended. Turnover fell to 3.41 billion units worth RM3.04 billion from 3.47 billion units worth RM3.58 billion on Thursday.
Malaysia’s benchmark index is set for a sector reshuffle, with real estate gaining prominence as IOI Properties Group (5249.MY) replaces Sime Darby (4197.MY) in the FTSE Bursa Malaysia KLCI Index.
Index Rebalance to Shift Sector Weightings
According to CIMB Securities, the changes effective June 22, 2026 are expected to:
- Reduce weighting in financials and utilities
- Increase exposure to real estate
- Lift weightings in industrial, energy, consumer, and technology sectors
Rebalancing trades are likely to take place on June 19, potentially driving short-term volatility.
Broader Index Changes Across Bursa Benchmarks
Adjustments extend beyond the KLCI:
FBM 70 Index
New entrants include:
- AirAsia X (5238.MY)
- Allianz Malaysia (1163.MY)
- Ranhill Utilities (5272.MY)
- Sime Darby (4197.MY)
- Solarvest (0215.MY)
These replace names such as CTOS Digital (5301.MY) and NationGate (0270.MY), partly due to liquidity considerations.
FBM Hijrah Shariah Index
- Sunway Healthcare (SUNMED.MY)
- Tanco Holdings (2429.MY)
replace Eco-Shop Marketing (5337.MY) and Zetrix AI (ZETRIX.MY).
Structural Reforms Could Reshape the Index
Market participants are also watching proposed enhancements:
- Expand KLCI from 30 to 50 constituents
- Introduce 10% cap on individual stock weightings
- Reduce FBM 70 to 50 constituents
If approved, these changes could take effect by late 2026 or mid-2027, improving market representation and diversification.
Research Picks Highlight Defensive Plays
CIMB maintains positive calls on:
- Telekom Malaysia (4863.MY)
- Tenaga Nasional (5347.MY)
- Public Bank (1295.MY)
These names reflect defensive positioning amid ongoing market uncertainty.
Investor Takeaways
- KLCI rebalancing will shift weight toward property, reducing financials and utilities exposure.
- Short-term volatility likely around rebalancing date (June 19).
- Broader index changes highlight liquidity and market cap dynamics.
- Proposed reforms could reshape Malaysia’s benchmark structure.
- Investors may consider defensive large caps amid sector rotation.
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