KUALA LUMPUR: The FBM KLCI closed slightly lower on Thursday after Bank Negara maintained its policy rate, even as the ringgit strengthened to a one-year high against the US dollar.
Bank Negara has maintained the Overnight Policy Rate (OPR) at 2.75%, in line with expectations, citing stable prices, resilient growth and moderating inflation heading into 2026.
The central bank, in a statement, said that at the current OPR level, the Monetary Policy Committee (MPC) considers the monetary policy stance to be appropriate and supportive of the economy amid stable prices.
At 5 pm, the FBM KLCI fell 2.61 points, or 0.16%, to 1,618.94, its intraday low after reaching a high of 1,624.29 earlier in the session.
There were 580 gainers, 536 losers and 584 counters traded unchanged on the Bursa Malaysia. Turnover stood at 3.96 billion shares valued at RM2.52bil.
The ringgit was quoted at 4.1838 against the US dollar, up 0.2% to its strongest level since October 2024. The local currency has gained 6.98% year-to-date, making it the best performer in Asia.
Dealers said the market ended softer amid cautious sentiment, with investors taking a breather after recent gains.
They noted that Bank Negara’s decision to keep the OPR unchanged at 2.75% was widely anticipated and already priced in, while focus now turns to corporate earnings releases this month.
At Bursa Malaysia, Nestle tumbled RM3.20 to RM112.80, Kuala Lumpur Kepong fell 30 sen to RM20.78, PETRONAS Dagangan eased 26 sen to RM22.54, and Malaysian Pacific Industries
declined 24 sen to RM8.46.
Conversely, Hong Leong Industries jumped 54 sen to RM14.74, Allianz-PA gained 40 sen to RM18.42, Chin Tek Plantations rose 20 sen to RM10.80, and Dutch Lady advanced 16 sen to RM21.64.
In terms of fund flows, local institutions and retailers were net sellers on Wednesday, offloading equities worth RM74mil and RM64mil respectively.
Foreign investors, meanwhile, turned net buyers with total purchases amounting to RM138mil.
Around the region, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.91%.
Japan’s Nikkei 225 closed 1.34% higher at 50,883.68 while South Korea’s Kospi rose 0.55%, at 4,026.45.
Hong Kong’s Hang Seng index was up 2.12%, at 26,485.90.
China’s CSI300 index rose 1.43% to 4,693.40, while the Shanghai Composite Index added 0.97% at 4,007.76 points.
