Malaysia’s Kuala Lumpur Composite Index (KLCI) demonstrated notable resilience in March, closing at 1,690 and outperforming other MIST markets amidst global geopolitical challenges. The index fell by 1.5% month-on-month, a stark contrast to the MSCI Emerging Market Index and the MSCI All Country Asia ex-Japan Index, which plummeted by 13.3% and 13.9% respectively.
The month saw local investors stepping up to absorb a net foreign selling of RM41.7m, as foreign shareholdings dipped to 18.9%. Despite this, local institutions turned net buyers, with a net purchase of RM0.8b, reversing their selling trend from February. Local retail investors also contributed with a marginal net buying of RM39m.
Sector-wise, five out of Bursa Malaysia’s 13 sectorial indices recorded gains, with the plantation sector leading at an 8.6% increase, marking its strongest monthly growth in nearly four years. The industrial production and energy sectors followed with gains of 7.1% and 5.8% respectively. Conversely, the construction, technology, and consumer sectors faced declines.
Among KLCI constituents, Petronas Chemicals, Kuala Lumpur Kepong, and Press Metal Aluminium emerged as top performers, whilst Sunway, Mr DIY, and Gamuda saw the largest declines. The KLCI’s performance highlights its relative stability in a volatile global market, offering a glimpse of optimism for investors navigating uncertain times.
