KUALA LUMPUR, June 15 (Bernama) -- Bursa Malaysia’s key index advanced at Monday’s close, tracking gains across regional equities as geopolitical risk sentiment improved following an interim agreement between the United States and Iran to reopen the Strait of Hormuz, said analysts. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 7.76 points, or 0.46 per cent, to 1,691.39 compared with last Friday's close of 1,683.63. The key index opened 6.76 points higher at 1,690.39 earlier today and moved between 1,688.04 and 1,697.48 throughout the session. Market breadth was positive, with gainers outpacing losers 789 to 483, while 467 counters were unchanged, 1,034 untraded and 36 suspended. Turnover surged to 5.02 billion units worth RM3.91 billion from 2.79 billion units worth RM2.31 billion last Friday.
Global markets staged a strong rebound after the US and Iran reached a deal to reopen the Strait of Hormuz, easing fears over energy supply disruptions and inflation pressures.
Relief Rally Across Asset Classes
Equities and bonds moved higher in tandem:
- Asian stocks surged over 3%
- S&P 500 futures rose 1.1%
- US 10-year Treasury yields fell to 4.42%
Meanwhile, oil prices dropped sharply:
- Brent crude fell over 4% to below US$84
Stocks rose because lower oil prices reduce inflation and Fed risks, improving the outlook for both growth and monetary policy.
Inflation Outlook Improves
The reopening of the Strait of Hormuz could:
- Restore global oil supply flows
- Remove geopolitical risk premium in crude prices
- Ease inflation pressures globally
This strengthens expectations that central banks may avoid further rate hikes or even shift toward easing.
Dollar Weakens, Risk Assets Gain
- US dollar declined as safe-haven demand eased
- Bitcoin climbed to a two-week high
- Gold rose ~2%, reflecting mixed hedging demand
The move signals a rotation back into risk assets as geopolitical fears temporarily subside.
Caution: Deal Still Fragile
Despite optimism, uncertainty remains:
- No detailed agreement released yet
- Negotiations still ongoing
- Risk of renewed conflict persists
Markets are reacting to optimism, not certainty.
What’s Next: Central Banks in Focus
Attention now shifts to:
- Federal Reserve policy signals
- Global central bank decisions
- Speed of inflation cooling from lower oil prices
The key question: "How fast will energy relief translate into policy easing?"
Investor Takeaways
- Peace deal drives a global risk-on rally across equities and bonds.
- Falling oil prices ease inflation concerns and support markets.
- Lower yields signal reduced pressure on central banks.
- Markets remain vulnerable as geopolitical risks are not fully resolved.
- Watch Fed guidance and inflation trends as next catalysts.
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