Kuala Lumpur, March 7, 2026, 16:06 (MYT)
Bursa Malaysia eked out a gain last week, nudged higher as Petronas Chemicals Group rallied late and pushed the benchmark just into the green. The FTSE Bursa Malaysia KLCI wrapped up Friday at 1,718.06, rising 1.45 points over the week. Petronas Chemicals jumped 22.2%, adding 10.3 points to the index with investors zeroing in on its edge in domestic feedstock.
The gain stood out during a week rattled by oil-shock anxieties and fresh inflation concerns across Asia. Asian shares took a steep hit on March 4, with markets on edge over a potential energy shock, according to Reuters. Bank Negara Malaysia, for its part, left its overnight policy rate untouched at 2.75% on Thursday, maintaining its stance as external risks heightened.
The KLCI, Malaysia’s key 30-stock index, slipped 0.95% Monday to 1,700.21. It clawed back 0.69% Tuesday, lost another 0.80% Wednesday, but managed a 0.88% rebound Thursday. The 1,700 mark came under pressure, yet stayed intact.
Malaysia managed to hold its ground better than some of its neighbors midweek. On Wednesday, Thailand’s SET slipped 5.6%, Indonesia’s IDX Composite dropped 4.6%, and Singapore’s Straits Times Index lost 2.4%. Meanwhile, the KLCI hovered near 1,700, according to The Star. Rakuten Trade’s Vincent Lau pointed to Malaysia’s “strong economic fundamentals” and its role as an energy exporter as factors that helped soften the blow. The Star
Investors aren’t shying away from heavyweight names, even after the recent selloff, according to Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA. Thursday’s bounce, he told Bernama, pointed to renewed interest in stocks with solid fundamentals. He also noted that the central bank’s rate call played a role in calming market nerves.
The central bank handed the market another boost. According to Reuters, Bank Negara is sticking to its 4% to 4.5% growth forecast for this year, sees inflation holding at moderate levels, and continues to call its policy stance supportive. Capital Economics’ Gareth Leather pointed out that higher energy prices stand to benefit net exporters such as Malaysia, though he flagged that fuel subsidies could pressure government finances.
The oil shock that’s been a boon to energy-linked stocks could end up weighing on the broader market. Goldman Sachs, according to Reuters, expects oil to breach $100 a barrel as soon as next week if shipments through Hormuz remain stalled. Petrochemical makers in Indonesia, Singapore, South Korea, and other parts of Asia have already scaled back production or warned of supply snags, as Middle East shipping lanes remain clogged.
Simply put, gains were slim. Over the week, the FBM Top 100, FBM Emas, FBM Mid 70, FBM Emas Shariah, and FBM ACE indexes all slipped; financial services shed 293.75 points, but energy eked out a 41.53-point increase. Trading volume jumped: 17.29 billion units changing hands, up from 13.62 billion the previous week, with total value at RM18.69 billion compared to RM18 billion. Thong Pak Leng at Rakuten Trade thinks Bursa Malaysia will likely stick in a 1,690 to 1,730 band next week. He sees a buying chance in “quality blue chips” if the 1,690–1,700 support level holds. BERNAMA
