Bursa ends lower amid higher oil prices, geopolitical risks

KUALA LUMPUR: Bursa Malaysia concluded in a lower position on Friday, still facing selling pressure as the country approaches the 2027 Budget announcement. The FTSE Bursa Malaysia KLCI index slipped 10.77 points to 1,601.01 at the close of the trading day, down from Wednesday's close of 1,611.78. Throughout the session, the benchmark index peaked at 1,613.45 and bottomed at 1,597.94 in the mid-morning.

On the larger market scale, the number of declining stocks surpassed the number of gaining stocks, with 813 falling and 378 rising. Two hundred and eighty-eight stocks remained unchanged, while 2,828 were untraded and 13 were suspended. Trading volume dropped to 3.51 billion units, equivalent to RM3.46 billion, a decline from the previous day's 3.83 billion units, or RM3.52 billion.

Mohd Sedek Jantan, IPPFA Sdn Bhd's director of investment strategy and country economist, noted that Brent crude oil surged more than three percent, fueled by heightened concerns over a possible confrontation between the United States and Iran. Jantan highlighted that the blend of higher energy prices, geopolitical instability, and continuous foreign selling is emerging as a major near-term challenge for Malaysian equities.

Foreign investors have been net sellers for ten straight trading days, diminishing the market's capacity to withstand external shocks despite the anticipation surrounding the 2027 Budget. He anticipates the KLCI to remain volatile in the coming period, with oil price fluctuations, foreign fund movements, and developments in the US-Iran tensions dominating the market ahead of the 2027 Budget.