
DOMESTIC-FACING counters may be a safer bet after Bursa Malaysia’s benchmark index fell sharply last week, tracking an emerging-market sell-off triggered by a firmer US dollar and the unwinding of the artificial intelligence trade.
The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) fell 2.6% week-on-week to 1,667.7, trimming its year-to-date gain to 0.7%, as a global risk-off mood hit Bursa Malaysia.
“With the sell-off driven by external forces, an unwinding AI trade and a more hawkish Fed, we favour domestic-facing, cash-generative companies that are largely insulated from the global sell-off and supported by local buying and the relief from cheaper oil,” BIMB Securities Sdn Bhd said in a report today.
The research house’s watchlist includes Hibiscus Petroleum Bhd, which it has rated a “Buy” with a 52-week target price of RM2.80, Sunway Construction Group Bhd (Buy; RM8.28), Telekom Malaysia Bhd (Buy; RM7.78), Tenaga Nasional Bhd (Buy; RM16.77) and Velesto Energy Bhd (Hold; RM0.32).
For the week ended June 26, 2026, the plantation sector was the sole gainer, rising 0.1% to 8,883.0, supported by firmer crude palm oil prices.
BIMB Securities said the market’s decline reflected a broad global risk-off sentiment rather than domestic factors.
Foreign investors resumed net selling on Bursa Malaysia, recording a net outflow of RM555 million for the week ended June 26, a sharp reversal from the near-flat RM11 million outflow recorded a week earlier.
Domestic investors absorbed the selling, with local retailers turning net buyers of RM380 million while local institutions added RM175 million, comfortably offsetting the foreign outflow.
The research house said Bursa Malaysia’s near-term direction now depends largely on external cues rather than domestic developments.
“A clean US-Iran settlement and steady Hormuz flows would keep oil low and support domestic-facing names. A renewed flare-up or a confirmed Fed hike would push oil and foreign outflows back up.
“We are watching three swing factors: the durability of the ceasefire, the Fed’s July path and the timing of RON95 subsidy rationalisation. Until these clear, we favour domestic-facing, cash-generative names with limited exposure to global tech and would treat further weakness as a chance to accumulate,” it said. –TMR
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, Les entered politics with characteristic determination to drive change for his constituents. He served three terms as Mayor of Auckland City in the 1990s, leading sweeping reforms to strengthen communities and improve infrastructure, as well as regenerating the heart of the city and its waterfront with bold development projects.







