Blue-chip buying lifts FBM KLCI amid weaker regional markets
Bursa Malaysia ended in positive territory on Thursday, supported by selective buying in blue chips while investors remained cautious amid a mixed regional market performance.
RSS · July 21, 2026 at 8:29 AM
KUALA LUMPUR, 21 JULY 2026 —
The FBM KLCI rose 8.43 points, or 0.49%, to 1,722.19 on Thursday, as selective buying in blue-chip stocks lifted the index amid a mixed regional market performance. The benchmark index touched an intraday high of 1,726.75 before closing in positive territory. The gainers and losers were closely balanced, with 576 gainers against 550 losers and 563 that were flat, as about 3.7 billion shares, valued at RM2.8 billion, changed hands.
Market Impact
The Malaysian stock market has been experiencing a volatile year, with the FBM KLCI fluctuating in response to global economic trends and interest rate changes. Historically, the index has been influenced by the performance of heavyweight banking and defensive stocks, which have provided a degree of stability in times of uncertainty. The market has also been impacted by the global semiconductor shortage, which has affected the technology sector. In recent months, the FBM KLCI has been trading in a range, with investors remaining cautious ahead of key economic data releases and ongoing uncertainty over the global interest rate outlook.
On Thursday, dealers reported that the local market was supported by selective buying in heavyweight banking and defensive stocks, although overall gains remained limited. Among the gainers, Nestle rose RM1 to RM93, United Plantations gained 30 sen to RM35, Critical Holdings advanced 24 sen to RM1.90, and Nationgate climbed 20 sen to RM1.17. Conversely, technology and semiconductor stocks were among the biggest losers on Bursa Malaysia, led by Malaysian Pacific Industries, which fell 46 sen to RM45.28. UMS Integration shed 28 sen to RM8.03, UWC lost 13 sen to RM6.03, MI Technovation dropped 11 sen to RM4.87, and Unisem declined 10 sen to RM4.56.
The Malaysian market's performance on Thursday had a limited impact on the broader market, with the ringgit strengthening 0.12% to 4.0735 against the US dollar, trimming its year-to-date loss to 0.3%. The local currency slipped 0.15% to 3.1613 against the Singapore dollar. Foreign investors were net buyers on Bursa Malaysia on Wednesday, with net purchases of RM141 million. Local institutions and retailers were net sellers, offloading RM136 million and RM5 million worth of equities, respectively. The market's performance was also influenced by the banking sector, with Public Bank rising 15 sen to RM5.20, Maybank adding eight sen to RM11.04, RHB Bank climbing three sen to RM8.47, and AmBank gaining one sen to RM6.49.
The technology and semiconductor sectors were among the hardest hit on Thursday, with Malaysian Pacific Industries, UMS Integration, UWC, MI Technovation, and Unisem all experiencing significant declines. The banking sector, on the other hand, provided some support to the market, with Public Bank, Maybank, RHB Bank, and AmBank all rising. CIMB declined one sen to RM7.70, and Hong Leong Bank lost 10 sen to RM22.02. The market's performance was also influenced by the foreign exchange market, with the ringgit strengthening against the US dollar. Details on the specific factors driving the market's performance are not yet available, but it is clear that the market remains highly volatile and sensitive to global economic trends.
Looking ahead, the outlook for the Malaysian market remains uncertain, with investors likely to remain cautious ahead of key economic data releases and ongoing uncertainty over the global interest rate outlook. The market's performance will likely be influenced by the performance of heavyweight banking and defensive stocks, as well as the technology and semiconductor sectors. The ringgit's performance against the US dollar and other major currencies will also be closely watched, as it has a significant impact on the market's overall performance. As the market continues to evolve, investors will be closely monitoring key economic indicators and global trends to inform their investment decisions.
Related: Bursa Malaysia