Kuala lumpur: Bursa Malaysia ended on a positive note, with the benchmark index rising by 1.16 percent to close near the 1,700 mark. This uptick was fueled by the market's optimistic response to the announcement of a two-week ceasefire between the United States and Iran, which includes Tehran permitting safe passage through the Strait of Hormuz. At the close of the session, the FTSE Bursa Malaysia KLCI (FBM KLCI) saw an increase of 19.45 points, reaching its intraday high of 1,696.31 from the previous day's close of 1,676.86.
According to BERNAMA News Agency, the index opened higher by 11.65 points at 1,688.51, reaching an intraday low of 1,683.58 early in the trading day. In the broader market, gainers outnumbered losers significantly, with 855 advancing compared to 410 declining stocks. Additionally, 459 counters remained unchanged, 941 were untraded, and 11 were suspended. The turnover increased substantially, with 3.77 billion units worth RM3.64 billion being traded, compared to the previous day's 2.55 billion units worth RM2.58 billion.
Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd, noted that market participation improved modestly, with selective buying evident across index heavyweights and sectors previously considered oversold. He mentioned that the decline in crude oil prices provided some relief to inflation-sensitive sectors, alleviating concerns over corporate cost pressures. However, he maintained a cautious outlook, suggesting that while the ceasefire is a positive development, the situation remains fluid and subject to sudden changes. Investors are likely to focus on defensive and fundamentally strong stocks, avoiding aggressive positions.
Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, remarked that the ceasefire agreement and the reopening of the Strait of Hormuz removed immediate risks, triggering a relief rally across oil, equities, and broader risk assets. He added that while easing tensions might allow markets to cautiously reprice rate cut expectations, the impact is not immediate, as central banks remain focused on underlying inflation dynamics rather than short-term energy volatility.
Regionally, Bursa Malaysia moved in tandem with its peers, with Japan's Nikkei 225 Index rising by 5.39 percent, South Korea's KOSPI surging by 6.87 percent, Singapore's Straits Times Index increasing by 0.95 percent, and Hong Kong's Hang Seng Index gaining 3.09 percent.
Among the heavyweights, Maybank, Public Bank, and TNB saw gains, while Petronas Chemicals experienced a decline. On the most active list, AirAsia X, V.S. Industry, and Zetrix AI recorded upward movements, while Velesto eased slightly. Top gainers included Nestle and Petronas Dagangan, while top losers were United Plantations and Batu Kawan.
In terms of indices, the FBM Top 100 Index, FBM Emas Index, FBM Emas Shariah Index, FBM ACE Index, and FBM Mid 70 Index all saw gains, whereas the Plantation Index experienced a decline. The Main Market volume rose, and the Warrants and ACE Market turnover expanded, highlighting increased trading activity across various sectors.