Kuala lumpur: Bursa Malaysia extended its upward trend to close higher on Wednesday, supported by improved market sentiment following reports of a potential release of strategic oil reserves aimed at easing the recent surge in global energy prices, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.10 points to 1,708.78 from yesterday's close of 1,701.68.
According to BERNAMA News Agency, the benchmark index opened 1.58 points lower at 1,700.10 and fluctuated between 1,699.02 and 1,709.93 throughout the day. Market breadth was positive, with gainers outpacing losers 604 to 446. A total of 525 counters were unchanged, 1,091 untraded, and 10 suspended. Turnover declined to 2.70 billion units worth RM2.78 billion from Tuesday's 3.60 billion units worth RM3.75 billion.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan noted that the International Energy Agency (IEA) is reportedly proposing the largest-ever release of oil stockpiles, which could help cap oil price volatility in the near term, although it would only provide a temporary solution to the current supply disruption. Mohd Sedek added that the prospect of coordinated action from the IEA, the United States, and the G-7 helped restore some near-term confidence in financial markets following the recent bout of volatility triggered by escalating tensions in West Asia.
Prime Minister Datuk Seri Anwar Ibrahim assured that Malaysia's oil supply remains under control despite the conflict in the region potentially affecting the global energy market. He confirmed that the supply of petroleum products in the country is sufficient at least until May 2026. Anwar also mentioned that the government is continuously monitoring current developments to protect the interests of Malaysians, ensure the stability of the national economy, and support all efforts toward peace and a diplomatic resolution to the ongoing conflict.
Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI finished marginally higher as bargain hunting continued following Monday's sharp sell-off. Thong added that investor sentiment was further supported by declining crude oil prices, which helped ease concerns over a potential spike in global inflation. He noted that the near-term outlook for the FBM KLCI has improved, with the market moving into a steadier recovery phase as the geopolitical 'war premium' is likely to unwind.
Mohd Sedek also highlighted that domestically, supportive macroeconomic data helped stabilize sentiment, as Malaysia's labor force statistics released this afternoon showed the unemployment rate remained steady at 2.9 percent, signaling continued resilience in the domestic labor market. This followed encouraging manufacturing data, reinforcing the view that Malaysia's economic fundamentals remain intact despite external uncertainties.
In market movements, financial sector gains led to today's positive performance. As a key proxy for economic growth and capital market activity, banking stocks attracted buying interest, supporting the broader market recovery and helping the FBM KLCI to close higher for the session. Among the heavyweights, Maybank climbed 14 sen to RM11.80, CIMB gained 15 sen to RM8.0, Tenaga Nasional perked up 10 sen to RM14.24, while Public Bank was flat at RM4.75, and IHH Healthcare eased two sen to RM8.99.
On the index board, various indexes showed gains, with the FBM Top 100 Index advancing 55.72 points to 12,326.31, the FBM Emas Index increasing 56.34 points to 12,484.14, and the FBM 70 Index jumping 97.74 points to 17,162.44. By sector, the Financial Services Index gained 96.27 points to 20,773.32, the Energy Index perked up 14.89 points to 796.44, and the Plantation Index added 15.33 points to 8,382.82.