Malaysia's FBM KLCI Stays Flat Amid Oil Stock Sell-Down and Asian Market Rally

Malaysia's FBM KLCI was flat in early trading, with Maybank, Press Metal, and PETRONAS Dagangan driving the index higher. Public Bank, IHH Healthcare, and CIMB weighed on the market. Investors continued to unload oil and gas stocks as crude oil prices declined. Asian markets reversed losses from yesterday, with Japan's Nikkei, China's CSI300, and Hong Kong's Hang Seng rising.

Malaysia's FBM KLCI was flat in early trading on June 19, 2025, as Maybank, Press Metal, and PETRONAS Dagangan drove the index higher, while Public Bank, IHH Healthcare, and CIMB weighed on the market. Investors continued to unload oil and gas stocks as crude oil prices declined. Asian markets reversed losses from yesterday, with Japan's Nikkei, China's CSI300, and Hong Kong's Hang Seng rising.

Geopolitical tensions in the Middle East, particularly the escalating Israel-Iran conflict, have driven crude oil prices higher. US Crude Oil bids surged on Tuesday, pairing recent declines as the conflict stretches on [1]. West Texas Intermediate (WTI) US Crude Oil prices rose back into near-term highs, pushed higher by continued escalations. President Trump's direct threats against Iran's Ayatollah Khamenei have stamped out investor hopes for a quick resolution [1].

WTI Crude Oil prices are forecast to remain choppy, with bids roiling between $72.00 and $74.00 per barrel. Geopolitical factors have dragged crude oil prices firmly higher, pushing WTI bids above the 200-day Exponential Moving Average (EMA) near $68.00 per barrel for the first time since early this year [1].

In Malaysia, energy-related stocks performed well following crude oil's weekend rally. PETRONAS Chemicals, MISC, and Tenaga Nasional rose significantly, while other sectors remained subdued. The lower liners on the domestic market remained subdued with the declining issues outweighing the advancers 4.17-to-1 [2].

Asian markets reversed losses from yesterday, with Japan's Nikkei, China's CSI300, and Hong Kong's Hang Seng rising. This reversal was likely due to the temporary respite in geopolitical tensions and the hope for a peaceful resolution in the Middle East. The Malaysian index, however, remained steady, reflecting the cautious stance of local investors towards the ongoing conflict.

References:

[1] https://www.fxstreet.com/news/wti-crude-oil-prices-lurch-higher-again-as-trump-barrels-into-israel-iran-conflict-202506171807

[2] https://www.thestar.com.my/business/business-news/2025/06/23/energy-stocks-take-centrestage-as-fbm-klci-bucks-downward-trend