BURSA MALAYSIA OPENS LOWER AS GEOPOLITICAL RISKS PERSIST

By Zufazlin Baharuddin

KUALA LUMPUR, March 12 (Bernama) -- Bursa Malaysia opened lower on Thursday, weighed down by softer Wall Street performance amid ongoing US-Iran tensions, while crude oil prices remained elevated.

At 9.15 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 11.65 points to 1,697.13 from Wednesday’s close of 1,708.78. The benchmark index opened 8.09 points lower at 1,700.69.

Market breadth was negative, with 279 losers outnumbering 148 gainers. A total of 266 counters were unchanged, 1,974 untraded, and 17 suspended. Turnover stood at 251.8 million shares worth RM201.89 million.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng told Bernama that US-Iran tensions remained the key focus, with crude prices rising despite the International Energy Agency’s (IEA) agreement to release 400 million barrels from its reserves.

At the time of writing, Brent crude had climbed 7.49 per cent to US$98.87 per barrel.

Malacca Securities Sdn Bhd said the IEA’s largest-ever emergency release is likely a temporary solution.

“Iran has begun laying mines in the Strait of Hormuz, while both Iran and Israel continue targeting each other’s major oil refineries. Oil prices remain elevated, potentially delaying US Federal Reserve rate cuts due to inflationary concerns,” it said in a note.

For Malaysia, the firm noted that longer shipping routes forced by the mines reduce global vessel supply and push up freight rates.

“Market sentiment will continue to favour MISC, as the shipping company is positioned to charge higher spot rates and pass war-risk premiums to charterers,” it added.

Given the current uncertainty, Malacca Securities suggested investors may focus on defensive sectors such as banking, real estate investment trusts (REITs), and healthcare.

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim assured that Malaysia’s oil supply remains stable, despite potential disruptions to the global energy market. He said domestic petroleum supplies are sufficient at least until May 2026 and that the government is monitoring developments to protect Malaysian interests, maintain economic stability, and support diplomatic efforts for peace.

Among heavyweights, YTL Power International and Press Metal Aluminium Holdings fell four sen to RM2.70 and RM7.54, respectively. Axiata slipped one sen to RM2.26, while MISC and CelcomDigi rose one sen each to RM8.51 and RM3.21.

On the most active list, AirAsia X shed half-a-sen to RM1.15, OGX Group fell four sen to 31 sen, while Hibiscus Petroleum rose eight sen to RM2.28, Hengyuan Refining Company gained 13 sen to RM1.69, and Lotte Chemical Titan Holdings added five sen to 46.5 sen.

Top gainers included Petronas Chemicals Group, up 35 sen to RM4.49; United Plantation, up 26 sen to RM31.90; Malaysian Pacific Industries, up 22 sen to RM30.20; and Petronas Dagangan, up 10 sen to RM22. Top losers were Nestle, down 90 sen to RM102; Pineapple Resources, down 22 sen to 60 sen; Petronas Gas and Tenaga Nasional, each down 12 sen to RM17.38 and RM14.12; and Hong Leong Bank, down 14 sen to RM22.94.

On the index board, the FBM Top 100 Index fell 73.60 points to 12,252.71, the FBM Emas Index declined 71.47 points to 12,412.66, the FBM 70 Index dropped 55.04 points to 17,107.39, the FBM Emas Shariah Index eased 32.03 points to 12,131.51, and the FBM ACE Index fell 45.94 points to 4,358.74.

By sector, the Financial Services Index fell 225.26 points to 20,548.06, while the Industrial Products and Services Index rose 1.87 points to 175.31, the Plantation Index gained 25.97 points to 8,408.79, and the Energy Index increased 3.67 points to 777.88.

-- BERNAMA