Kuala Lumpur:Bursa Malaysia extended its positive momentum from last week, driven by increased interest in banking stocks following the announcement of additional measures in Budget 2027. These measures aim to support small and medium enterprises (SMEs) through enhanced lending options, housing financing, and investment-driven credit growth.
According to BERNAMA News Agency, the FTSE Bursa Malaysia KLCI (FBM KLCI) closed at 1,618.01, marking a rise of 9.56 points or 0.59 percent from the previous close of 1,608.45. The index opened higher at 1,611.03 and fluctuated between 1,608.91 and 1,619.30 during the session.
Despite the gains, the broader market saw more losers than gainers, with 778 stocks declining and 344 advancing, while 520 remained unchanged. A total of 1,185 counters were untraded, and 12 were suspended. The day's turnover was slightly higher, with 3.36 billion units valued at RM2.91 billion, compared to 3.33 billion units worth RM2.90 billion on the previous trading day.
Rakuten Trade Sdn Bhd's vice-president of equity research, Thong Pak Leng, noted that the market remains cautiously optimistic due to the clarity provided by Budget 2027. This clarity reduces uncertainty and aids investors in evaluating sectoral outlooks. Thong mentioned that the budget's focus on domestic consumption, infrastructure, and investment could bolster market sentiment, although the benefits may take time to manifest.
Thong further added that selective bargain hunting is expected to support a gradual market recovery, especially in banking and other strong blue-chip stocks. However, challenges such as persistent foreign selling, high bond yields, and geopolitical uncertainties might restrict significant gains. With Budget 2027 setting a clearer domestic policy direction, the FBM KLCI is anticipated to trade within the 1,600-1,630 range, with a positive outlook.
Among the major gainers, Maybank increased by 14 sen to RM9.95, Public Bank rose by nine sen to RM4.66, CIMB added four sen to RM7.30, while Tenaga Nasional climbed 16 sen to RM13.04. In contrast, Genting Malaysia's shares dropped significantly, triggering a suspension of intraday short-selling (IDSS) until the following morning, as the shares fell more than 15 percent from the reference price.