Budget Cheer Lifts Bursa Malaysia

KUALA LUMPUR, Oct 12, 2026 — The FBM KLCI rebounded on Friday, rising 7.44 points or 0.46% to 1,608.45, buoyed by positive sentiment following the tabling of Budget 2027. Market breadth turned supportive, with 627 gainers against 450 losers, as investors interpreted the government’s policy measures as growth‑friendly despite recent foreign selling pressure.

Budget Cheer

Key announcements included a minimum wage hike to RM2,000 and an increase in STR cash aid allocation to RM16 billion. These measures were seen as supportive for domestic consumption and economic resilience. Construction (+2.30%), Transportation & Logistics (+1.19%) and Property (+1.18%) led sectoral gains, while Healthcare (-0.75%) and Energy (-0.09%) lagged.

Analysts expect the KLCI to trade with a slight positive bias in the near term, supported by improving domestic sentiment and selective buying interest. However, persistent foreign outflows and geopolitical risks could cap upside momentum.

#businessnews