Kuala lumpur: Malaysia's domestic sectors are expected to remain resilient despite near-term market jitters, Maybank Investment Bank Bhd (Maybank IB) said. Rising oil prices and safe-haven demand, driven by geopolitical tensions in West Asia, have pushed global markets into a defensive stance, it added.

According to BERNAMA News Agency, the investment bank suggested that investors could explore trading opportunities linked to commodity strength. Defensive positioning through dividend yield plays, such as banks and real estate investment trusts (REITs), is advisable, Maybank IB noted in a research note. The bank also highlighted the potential impact of higher oil prices on construction costs, which could rise due to increased diesel and building material prices.

Maybank IB further elaborated that cement might experience moderate pressure from higher thermal coal costs, while steel prices are likely to remain stable amid weak global demand. Bitumen prices, used in road construction, may be affected due to their link to oil prices. Overall, the sector faces moderate cost risks but limited downside to earnings forecasts under current conditions, the bank stated.

The ongoing conflict has overshadowed the seasonal decline in the Malaysian Palm Oil Board's stockpile data released last week. Crude oil prices have remained highly volatile, briefly touching US$119 per barrel, which has sparked renewed interest in the sector. Maybank IB believes sustained high crude oil prices may accelerate the implementation of B50 biodiesel to reduce import reliance and save on foreign exchange, supporting crude palm oil demand and prices. The bank maintains a 'Neutral' call on planters.

Maybank IB also highlighted that dividend yield opportunities remain attractive in the current environment. During the recent fourth-quarter results season for financial year 2025, several companies raised dividends, with some announcing higher payouts. Banks were the main stocks in focus for higher dividends, along with fixed broadband telco players, while REITs maintained consistent dividend payouts. These sectors collectively offer dividend yields of five to six per cent, according to the bank.

In January and February 2026, banking counters staged a strong advance and maintained a solid uptrend, helping the KLCI achieve a multi-year breakout, Maybank IB added.