Bursa falls as Middle East conflict hits market sentiment

2026-03-02 - 10:34

KUALA LUMPUR: Bursa Malaysia ended broadly lower today as risk sentiment deteriorated sharply following renewed escalation in the Middle East conflict, triggering a widespread regional equity sell-off. IPPFA Sdn Bhd director of investment strategy and country economist 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%, reflecting sensitivity to global growth uncertainty and tighter financial conditions. “Among FTSE Bursa Malaysia KLCI (FBM KLCI) constituents, consumer and retail stocks came under heavy pressure, falling as much as 7.26%, as fears of cost-push inflation and softer discretionary demand intensified amid rising energy prices and heightened geopolitical uncertainty,” he told Bernama. In contrast, Sedek said basic materials stocks emerged as clear outperformers, gaining up to 13%, 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 5pm, the FBM KLCI declined 16.40 points, or 0.95%, 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 were 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. At the time of writing, Brent crude jumped 8.08% to US$78.76 (RM309.29) per barrel. Regionally, Singapore’s Straits Times Index was down 2.09% to 4,890.86, Hong Kong’s Hang Seng Index slumped 2.14% to 26,059.85 and Japan’s Nikkei 225 fell 1.35% to 58,057.24. Among Bursa Malaysia’s heavyweights, Press Metal advanced 8 sen to RM7.21, Hong Leong Bank climbed 12 sen to RM23.40, Maybank trimmed 24 sen to RM11.72, Public Bank shed 8 sen to RM4.85, and CIMB shed 10 sen to RM7.94. On the most active list, Velesto gained 1 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 4 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 9am on March 9, 2026, pursuant to Rule 8.02(2) of the LEAP Market Listing Requirements. On the index board, the FBM Emas Index declined 130.44 points to 12,480.99, the FBMT 100 Index fell 129.11 points to 12,304.71, the FBM Emas Shariah Index dipped 100.96 points to 12,116.60, the FBM 70 Index shrank 228.46 points to 17,314.01, and the FBM ACE Index dropped 111.25 points to 4,609.0. By sector, the financial services index slipped 252.70 points to 20,829.10, the industrial products and services index added 0.56 of-a-point to 171.39, the energy index gained 24.43 points to 778.17, and the plantation index was 73.01 points weaker at 8,196.56. The Main Market volume was slightly lower at 2.37 billion units valued at RM3.62 billion from Friday’s 2.43 billion units valued at RM5.31 billion. Warrants turnover expanded to 933.54 million units worth RM105.71 million from 746.92 million units worth RM76.83 million previously. The ACE Market volume surged to 586.59 million units valued at RM178.30 million compared with 354.36 million units valued at RM143.11 million on Friday. Consumer products and services counters accounted for 381.73 million shares traded on the Main Market, industrial products and services (302.98 million), construction (188.76 million), technology (306.21 million), financial services (143.11 million), property (281.85 million), plantation (34.24 million), real estate investment trusts (47.86 million), closed-end fund (37,200), energy (394.37 million), healthcare (155.08 million), telecommunications and media (57.50 million), transportation and logistics (36.84 million), utilities (48.12 million), and business trusts (248,700).