Kuala Lumpur, Feb 21, 2026, 15:53 MYT — The market has closed.
- FBM KLCI ended 0.04% higher at 1,752.83, picking up in the final stretch thanks to gains in major banking stocks.
- Market breadth remained soft, though financials managed to hold up the benchmark.
- Next week, traders will be eyeing results season, the ringgit, and key U.S. data.
The FTSE Bursa Malaysia KLCI (FBM KLCI) closed out Friday barely changed, inching up just 0.72 point, or 0.04%, to finish at 1,752.83. Some last-minute buying in major financials gave the index a late boost after a softer start. Even so, losers outpaced gainers. Turnover hit 2.03 billion shares, amounting to 2.20 billion ringgit in value.
A near-flat finish stands out here, highlighting how thin the market’s support has gotten. The big banks are just about holding up the main index, yet the selling pressure beneath the surface suggests traders are bracing defensively—heading into a week when offshore headlines will probably drive moves before local news even registers.
Bursa Malaysia looks set for a firmer week, with potential to push up toward the 1,770 mark as investors gear up for a busier period heading into earnings season, according to IPPFA Sdn Bhd’s Mohd Sedek Jantan. He called corporate earnings the “critical barometer” of whether the index can hold its ground. But Thong Pak Leng at Rakuten Trade warned the market could get stuck moving sideways, given the recent run-up and persistent profit-taking in blue chips. BERNAMA
There’s an obvious catch here: should profit-taking extend from a handful of big names to a wider de-risking push, the KLCI might still appear steady even as liquidity dries up quickly. Any spike in geopolitical tensions or sudden move in global rates could flip “selective buying” into “no bids” almost instantly.
Fresh data landed on the macro front: Malaysia’s January trade came in at RM272.37 billion, up 12.6% from a year ago, according to the Investment, Trade and Industry Ministry. Exports jumped 19.6% to RM146.87 billion, MITI said, putting the trade surplus at RM21.37 billion—a record for January. Matrade chief executive Abu Bakar Yusof said the agency plans to maintain its exporter development and promotion programmes this year.
Government data painted a slower picture compared to December. Exports, imports, and total trade all declined 3.9% in January from the previous month, with the trade balance posting a 3.2% drop, according to the trade department. One number stood out: re-exports soared 51.5% year-on-year, underscoring the extent to which trade-related flows, not just local shipments, drove the gains.
Inflation numbers came in soft again. According to the statistics department, Malaysia’s consumer prices in January were up 1.6% compared to the same month last year. Transport costs dropped, with the group showing deflation of -0.7%. Headline inflation ticked just 0.1% higher versus December.
Currency action stayed relatively calm, with the ringgit ending a touch stronger on Friday at 3.8995/9055 versus the dollar, according to Bank Muamalat chief economist Mohd Afzanizam Abdul Rashid. He cited lingering “risk-off” mood amid ongoing U.S.-Iran nuclear negotiations, plus support from higher oil; Brent crude settled 0.89% firmer at $72.30 a barrel. Malay Mail
Derivatives traders didn’t buy into the cash market’s late surge. FBM KLCI futures slipped on Friday—February’s front-month lost 12 points to finish at 1,746.0. Open interest ticked higher, suggesting fresh positions on the board, not exits.
Beyond Malaysia, U.S. tech earnings and geopolitics are likely to set the tone this week. Nvidia is on deck to report Wednesday, while markets keep an eye on both the four-year anniversary of Russia’s full-scale Ukraine invasion and continued Middle East tensions—factors keeping oil and defence stocks active, according to Reuters’ “Take Five” column. Reuters
Coming up for local markets: Bank Negara Malaysia’s Monetary Policy Committee is set to deliver its policy decision on March 5.
Markets snap back into gear Monday (Feb 23), and traders are watching for those first earnings flashes—plus any signs that banks can hang onto their late-week momentum. Next up: the Conference Board’s U.S. consumer confidence numbers drop Tuesday (Feb 24).
