Malaysian market slips as oil climbs and West Asian tensions rise

On the trading day, the FTSE Bursa Malaysia KLCI eased to 1,601.01, down 10.77 points from the previous close, as investors remained cautious before the 2027 Budget reveal. The market opened modestly higher but fell to a mid-morning low of 1,597.94, with 813 losers outweighing 378 gainers and 482 stocks unchanged. Turnover declined to 3.51 billion units, valued at RM3.46 billion, compared with the prior session.

Mohd Sedek Jantan of IPPFA Sdn Bhd noted that Brent crude rose over three percent amid fears of a US-Iran escalation, adding that higher energy costs and geopolitical risk are creating near-term headwinds for Malaysian equities. He warned that foreign investors' continued net selling could limit the market's ability to absorb external shocks despite budget expectations.