Kuala Lumpur, 13 March 2026 – Malaysia’s benchmark FBM KLCI slipped below the key 1,700 psychological level again as investor sentiment weakened amid escalating tensions in the Middle East and a surge in global oil prices.
The FTSE Bursa Malaysia KLCI fell 12.16 points, or 0.71%, to 1,698.85, after hitting an intraday low of 1,696.04 during the session. For the week, the benchmark index declined 1.12%, reflecting growing risk aversion among investors.
Market breadth remained negative with 440 gainers against 627 losers, while 2.9 billion shares worth RM3.45 billion were traded on Bursa Malaysia.
Oil Prices and Geopolitical Risks Weigh on Sentiment
The market downturn tracked broader weakness across regional equities as investors reacted to escalating geopolitical risks linked to the Iran conflict and the potential disruption of energy supply routes.
Global crude prices surged above US$100 per barrel, heightening concerns about inflation and economic uncertainty.
Analysts said the spike in oil prices has made investors more cautious, particularly as rising energy costs could slow global growth and pressure corporate earnings.
Major Losers on Bursa Malaysia
Several heavyweight stocks led the decline on the benchmark index, including:
- Nestlé Malaysia, down RM1.70 to RM102.40
- Malayan Cement, falling RM1.33 to RM6.15
- Petronas Dagangan, easing 68 sen to RM21.26
- Heineken Malaysia, dropping 56 sen to RM22.14
Energy and Commodity Counters Provide Support
Despite the overall market weakness, some stocks benefited from the rise in oil prices and commodity-linked sectors.
Gainers included:
- Gas Malaysia, up 24 sen to RM5.28
- Dutch Lady Milk Industries, rising 18 sen to RM32.00
- Concrete Engineering Products, adding 16 sen to RM1.35
- Petronas Chemicals, gaining 15 sen to RM4.75
Analysts noted that higher crude prices typically support energy-related companies and certain commodity-linked sectors, even as broader market sentiment remains fragile.
Volatility Likely to Persist
Market participants expect continued volatility as investors monitor developments in the Middle East and the outlook for global energy markets.
Rising oil prices could fuel inflation pressures and influence central bank policy decisions, potentially affecting capital flows into emerging markets such as Malaysia.
For now, Bursa Malaysia’s performance is likely to remain closely tied to global geopolitical developments and movements in the energy market.
