PETALING JAYA: With Malaysian equities battered by relentless foreign selling and mounting global uncertainties, market experts are urging investors to seize the weakness as a buying opportunity rather than retreat to the sidelines.
The benchmark FBM KLCI slipped below the psychologically important 1,600-point level on Monday, plunging to its lowest level in 13 months as selling pressure continued to weigh on investor sentiment.
But amid the market turbulence, investment experts believe opportunities are emerging for investors willing to look beyond the near-term volatility.
Tradeview Capital chief investment officer Nixon Wong said investors should take advantage of market weakness to selectively accumulate fundamentally sound stocks, particularly quality blue chips backed by resilient earnings, strong balance sheets and attractive dividend yields.
“There are also selective opportunities in small mid-cap stocks with solid fundamentals and reasonable valuations,” he told StarBiz.
In terms of sectors, Wong said he favours the banking sector for its earnings resilience and attractive dividends, along with utilities and construction which currently benefit from ongoing infrastructure investments and growing electricity demand.
Additionally, he noted that consumer and technology stocks with improving earnings prospects and reasonable valuations may offer selective opportunities for investors.
Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, sees signals of an “opportunistic accumulation” following recent market weakness.
“The sustainability of the rebound will depend on improving investor confidence and a stabilisation in external market conditions.
“While the recovery in market breadth is encouraging, a sustained move above 1,600 points would be important to reinforce the near-term bullish momentum,” he noted.
Meanwhile, Apex Research said the FBM KLCI’s drop to below 1,600 points earlier this week could prompt selective bargain hunting in stocks that are fundamentally sound with attractive valuations and dividend yields.
“Nevertheless, a sustained recovery will likely depend on stabilising foreign flows and improved market breadth,” it said.
Looking ahead, the FBM KLCI is likely to continue hovering close to the 1,600-point level in the near term, as global headwinds and persistent foreign fund outflows counterbalance solid domestic economic growth, analysts said.
The benchmark index closed at 1602.27 points yesterday, up by 2.69 points or 0.17% a day before.
Across the broader market, gainers led losers 623 to 404, with 517 counters remaining unchanged.
From a wider lens, the FBM KLCI has fallen by around 9.5% from a one-year peak of 1771.25 points on Jan 27, 2026.
The index’s trailing price-to-earnings ratio also declined to 13.9 times from 16.71 times during this period.
“We expect the FBM KLCI to remain range-bound around the current level in the near term, supported by resilient domestic fundamentals but weighed down by external uncertainties, geopolitical tensions and subdued foreign investor participation,” Wong said.
Stronger corporate earnings and better market sentiment would be needed to drive a sustained recovery, he added.
Apex Securities Research expects the FBM KLCI to remain volatile, though a recovery could potentially be supported by Wall Street’s “mixed but broadly positive performance overnight”.
“However, ongoing geopolitical uncertainties and weakness in regional technology stocks could continue to dampen risk appetite,” it added.
It said that while the modest recovery implies that selling pressure may be easing, the broader trend remains bearish.
The brokerage saw immediate support for the FBM KLCI at 1,580, followed by 1,560, and resistance at 1,610 to 1,630.
“A sustained break above 1,650 points would be needed to signal a more meaningful recovery,” it said.
