TMR

KUALA LUMPUR — Bursa Malaysia ended marginally lower on Tuesday as investors adopted a more defensive stance amid escalating geopolitical tensions and softer regional risk sentiment. 

At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) edged down 0.44 of a point, or 0.03 per cent, to 1,727.27 from yesterday’s close of 1,727.71.

The benchmark index, which opened 5.17 points higher at 1,732.88, moved between 1,726.13 and 1,734.32 throughout the day.

Market breadth was negative with losers leading gainers 618 to 509, while 610 counters were unchanged, 967 untraded and 15 suspended.

Turnover was lower at 3.36 billion units worth RM3.24 billion compared with 3.51 billion units worth RM2.84 billion on Monday.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the FBM KLCI was also weighed down by selling pressure concentrated in selected index heavyweights. 

“Sentiment was further tempered by Malaysia’s April headline inflation accelerating to 1.9 per cent year-on-year from 1.7 per cent previously, reinforcing concerns surrounding lingering cost pressures and the potential moderation in consumer demand momentum.

“Nevertheless, downside was partially offset by continued strength in the retail segment, where several counters rallied following stronger-than-expected first quarter of 2026 (1Q 2026) earnings, underpinned by resilient spending trends and margin expansion,” he told Bernama. 

Meanwhile, he said foreign investors remained net sellers for the fifth consecutive session as of yesterday, highlighting persistent external caution and ongoing portfolio reallocation amid elevated global macro and geopolitical uncertainties.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said market sentiment is still being capped by elevated crude oil prices, unresolved geopolitical tensions in West Asia, uncertainty over US interest rates and concerns over global inflation.

“While the easing oil prices may provide some near-term relief to market sentiment, investors are likely to remain cautious and selective until there is greater clarity on external developments,” he said.

He expects the benchmark index to remain range-bound in the near term as bargain-hunting activities may gradually emerge on market weakness, while upside momentum could remain limited by the cautious external environment.

“We anticipate the benchmark index to trend within the range of 1,720-1,750 for the rest of the week,” he added.

Among heavyweights, Tenaga Nasional added eight sen to RM14.52, CIMB gained four sen to RM7.84, Public Bank gave up four sen to RM4.79, IHH Healthcare eased five sen to RM9.00, while Maybank was flat at RM11.08. 

On the most active list, Oppstar fell 10.5 sen to 82.5 sen, TT Vision edged up one sen to 35 sen, GIIB gained three sen to 33.5 sen, Zetrix AI was half a sen lower at 83.5 sen, and Genetec Technology shed two sen to 32.5 sen. 

Among top gainers, Ajinomoto improved 48 sen to RM12.88, Kuala Lumpur Kepong advanced 36 sen to RM20.56, Sunway Construction and Dutch Lady Milk Industries widened 20 sen each to RM7.30 and RM33, and Batu Kawan widened 18 sen to RM20.88.   

As for the top losers, UMS Integration lost 42 sen to RM7.98, Nestle shed 36 sen to RM95.04, Petronas Dagangan erased 34 sen to RM19.20, while Hong Leong Industries and Hong Leong Bank slid 28 sen each to RM18.20 and RM21.70.

On the index board, the FBM Emas Index slipped 1.07 points to 12,803.70, the FBMT 100 Index lost 2.66 points to 12,640.08, the FBM Mid 70 Index went down 1.59 points to 18,375.92, the FBM Emas Shariah Index decreased by 13.91 points to 12,735.16, and the FBM ACE Index edged down 13.46 points to 4,706.59.

Sector-wise, the Plantation Index rose 13.02 points to 8,620.94, the Industrial Products and Services Index shrank 0.79 of a point to 198.87, the Financial Services Index slipped 35.34 points to 20,083.06 and the Energy Index weakened 4.02 points to 803.05.

The Main Market volume slipped to 1.67 billion units valued at RM2.74 billion from 1.80 billion units valued at RM2.45 billion on Monday.

Warrants turnover fell to 831.30 million units worth RM108.30 million from 1.02 billion units worth RM135.05 million yesterday.  

The ACE Market volume increased to 853.98 million units valued at RM394.67 million from 684.71 million units valued at RM254.32 million previously.

Consumer products and services counters accounted for 246.26 million shares traded on the Main Market, industrial products and services (374.02 million), construction (131.97 million), technology (248.0 million), financial services (57.54 million), property (178.79 million), plantation (39.90 million), real estate investment trusts (16.58 million), closed-end fund (55,200), energy (117.34 million), healthcare (118.11 million), telecommunications and media (50.57 million), transportation and logistics (38.75 million), utilities (51.68 million), and business trusts (296,800). — BERNAMA

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THE Employees Provident Fund (EPF) recorded a total investment income of RM27.73 billion for the first quarter ended 31 March 2026 (Q1 2026), marking a 51% increase from RM18.31 billion in the corresponding period a year earlier.

The figure includes unrealised mark-to-market gains and losses on securities, in line with previous reporting practices, mainly arising from foreign exchange rate movements.

Its CEO Ahmad Zulqarnain Onn said the strong quarterly performance was driven by proactive portfolio positioning ahead of anticipated market volatility.

“EPF’s strong first-quarter income reflects a portfolio decision taken at the beginning of this year to realise gains ahead of anticipated market turbulence. Our portfolio managers front-loaded income that would otherwise have been spread across the full year. Members should not extrapolate this quarter’s result, as it is unlikely to be repeated in subsequent quarters. The underlying portfolio continues to be managed for sustainable, long-term returns and not short-term peaks.

“The environment ahead remains challenging. Elevated geopolitical risk, rising oil prices, and renewed inflationary pressures create real headwinds for global markets. We entered this period of uncertainty in a position of strength because we acted early. Our priority now is capital preservation and disciplined deployment to ensure the adequacy and sustainability of retirement savings for our 18 million members over the long term,” he added.

Equities remained the main driver of returns in the quarter, with income rising 88% to RM20.34 billion from RM10.80 billion a year earlier.

EPF said the increase was supported by broad-based gains in global markets in the early part of the quarter, underpinned by improving investor sentiment that lifted most major indices.

However, momentum softened in March as escalating geopolitical tensions and global uncertainty heightened volatility.

Fixed income instruments contributed RM6.76 billion, or 24% of total investment income in Q1 2026.

The segment, which includes Malaysian Government Securities and equivalents as well as loans and bonds, continued to provide stable returns and acted as a defensive buffer amid market uncertainty.

Real estate and infrastructure investments generated RM0.19 billion, while money market instruments contributed RM0.44 billion during the quarter, broadly in line with expectations for these asset classes.

Total investment assets rose to RM1.44 trillion, with 36% allocated to global investments. International exposure generated RM15.36 billion, accounting for 55% of total investment income for the quarter, underscoring the role of geographical diversification in enhancing returns and managing risk.

For the quarter, investment income for Simpanan Konvensional stood at RM22.63 billion, while Simpanan Shariah recorded RM5.10 billion.

On the membership front, the Department of Statistics Malaysia reported that labour market conditions remained stable in February 2026, with unemployment steady at 2.9%.

Against this backdrop, EPF registered 220,925 new members in Q1 2026, bringing total membership to more than 18.3 million.

Active members rose to 10.8 million, improving the active-to-inactive ratio to 59:41. Active employers increased to 642,609 as at March 2026, following 19,956 new registrations during the quarter.

Total contributions grew 13.3% to RM38.01 billion from RM33.54 billion a year earlier. Voluntary contributions continued to gain traction, rising to RM8.83 billion in Q1 2026, supported by EPF’s digital platforms that have made participation easier and more accessible.

Meanwhile, the number of Malaysian formal sector members contributing above statutory rates through i-Topup increased 19.8% to 232,305.

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