Markets Wary Ahead of Key Inflation Data

KUALA LUMPUR, Aug 12, 2026 — The FBM KLCI slipped 3.91 points, or 0.23%, to 1,731.46 as rising crude oil prices and persistent geopolitical concerns weighed on sentiment. Market breadth was slightly negative, with 574 decliners against 570 gainers. Healthcare (+1.23%) and Energy (+0.99%) led sectoral gainers, while Plantation (-0.38%) and Property (-0.34%) lagged.

Global equities also softened. The Dow Jones fell 0.34% to 53,791.85, the S&P 500 lost 0.32% to 7,728.20, and the Nasdaq declined 0.60% to 26,445.45. Weakness in communication services and technology weighed, with Alphabet down 3.8% and Apple off more than 1%. Oil prices extended gains amid Middle East tensions, with WTI crude up 1.3% to $83.20 and Brent crude rising 1.4% to $88.91, after Iran reiterated the Strait of Hormuz would remain closed until conditions were met.

Key Inflation Data

Attention now turns to U.S. inflation data, with July CPI due Wednesday and PPI Thursday. Analysts expect CPI to continue its downward trend, reinforcing the case for the Federal Reserve to hold rates steady, though services inflation remains sticky. Elevated oil prices risk reigniting inflationary pressures just as labour market softness raises growth concerns, leaving the Fed with a delicate balancing act.

In Malaysia, cautious sentiment is expected to persist as investors await clarity on Hormuz developments. Healthcare counters may remain in focus, supported by buying momentum, while Energy could benefit from firm crude prices. Property stocks may stay weak following recent underperformance.

Technically, the FBM KLCI remains within a downward-sloping channel since January. Immediate support lies at 1,720, with 1,700 as the next level if profit-taking resumes. Resistance remains at 1,760–1,770, with a decisive break above needed to turn constructive.

#businessnews