KLCI Slips Amid Geopolitical Tensions; Eyes Recovery Following Wall Street Gains

The Malaysian equity market experienced a modest downturn on Thursday, with the Kuala Lumpur Composite Index (KLCI) closing at 1,686.24, a decrease of 10.07 points or 0.59%. The index fluctuated between 1,680.01 and 1,692.65 throughout the session, struggling to maintain the 1,690-point plateau. The decline was primarily driven by losses in the financial and telecommunications sectors, which offset gains in plantations and industrials. Notable losers included RHB Bank, which plummeted 3.26%, and Public Bank, which fell 2.13%. Conversely, Petronas Chemicals saw a significant surge of 4.11%, while IOI Corporation rose 1.90%. Global sentiment remained volatile due to developments in the Middle East. West Texas Intermediate (WTI) crude climbed 3.44% to $97.66 per barrel following reports that Iran restricted naval traffic through the Strait of Hormuz. However, market anxiety eased after Israeli Prime Minister Benjamin Netanyahu indicated that Israel would begin negotiations with Lebanon as soon as possible. Despite the local dip, the KLCI is expected to rebound on Friday, following the lead of U.S. indices. The Dow Jones Industrial Average rose 0.58% to 48,185.80, and the S&P 500 gained 0.62% to close at 6,824.66. Additionally, investors are awaiting February unemployment data from Malaysia, following a January jobless rate of 2.9%.