Markets Score 32 Bearish

KLCI Faces Downward Pressure Amid Middle East Tensions and Oil Surge

Apr 29, 2026 23:31 UTC

KLCI, CL=F, MAYBANK, CIMB, GOOGL, AMZN, META, MSFT

Immediate term

The Kuala Lumpur Composite Index declined on Wednesday as geopolitical instability and rising energy costs weighed on investor sentiment. Markets are bracing for further losses on Thursday following a mixed performance on Wall Street.

KLCI closed at 1,720.42, down 0.53%
WTI crude surged 6.79% to $106.72 due to Middle East tensions
Financial stocks, including Maybank and CIMB, saw significant losses
U.S. markets remained mixed ahead of Big Tech earnings
The Federal Reserve maintained interest rates in a divided vote

The Malaysian equity market continued its downward trajectory on Wednesday, with the Kuala Lumpur Composite Index (KLCI) closing at 1,720.42. The index shed 9.18 points, representing a 0.53% decline, as it struggled to maintain support above the 1,720-point threshold. The slump was driven by a combination of domestic sector weakness and global macro headwinds. Financial shares led the decline, while the telecoms, industrials, and plantations sectors posted mixed results. Notable losers included Maybank, which plummeted 1.60%, and CIMB Group, which fell 1.16%. External pressures were amplified by surging crude oil prices, fueled by the ongoing blockade of the Strait of Hormuz and persistent conflict in the Middle East. West Texas Intermediate (WTI) crude for June delivery jumped 6.79% to settle at $106.72 per barrel. Sentiment was further dampened by a lackluster performance in the U.S., where the Dow Jones Industrial Average dropped 0.57% to 48,861.81. Traders remained cautious ahead of critical earnings reports from Alphabet, Amazon, Meta, and Microsoft, as well as a divided Federal Reserve decision to maintain current interest rates.