KUALA LUMPUR: Bursa Malaysia joined in a regional stock rally as traders celebrated reports of a permanent peace deal struck between the US and Iran, and the resumption of oil supply through the Strait of Hormuz.
Apex Securities noted that Tehran has yet to formally confirm the agreement despite US President Donald Trump's announcement, and negotiations are expected to cotinue over the coming months.
"Uncertainty surrounding the final terms of the US-Iran agreement, ongoing tensions involving Lebanon and the elevated US 10-year Treasury yield at 4.49% could continue to drive market volatility and limit foreign fund inflows," it said in its market outlook.
However, the breakthrough in negotiations has eased immediate concerns over supply disruptions in the Middle East and contributed to the recent decline in crude oil prices.
With the deal set to be officially signed on Friday in Switzerland, oil prices dove about 4% to US$84, their lowest in nearly three months.
Apex Securities also noted there was continued optimism over AI and growth-related themes following the strong market debut of SpaceX.
"On balance, we expect sentiment to remain constructive in the near term," it said.
Malaysia's benchmark stock index jumped over eight points or 0.5% to 1,691.82, with the market's leading blue chips rallying over weeks of decline.
Financial services led the index gains as Maybank rose 14 sen to RM10.85, CIMB jumped 16 sen to RM7.55, Public Bank added four sen to RM4.87, Hong Leong bank gained 12 sen to RM21.46 and RHB put on six sen to RM8.43.
Nestle climbed RM1.20 to RM96.80, SD Guthrie gained six sen to RM6.06 and Tenanga Nasional added 10 sne to RM14.52.
In regional markets, South Korea's Kospi led gains with a 5.69% jump to 8,586, while Japan's Nikkei was up 5.11% to 69,388.
Singapore's Straits Times rose 0.95% to 5,071.
