Malaysia’s benchmark KLCI fell for a third consecutive session to around 1,739 on Friday afternoon, nearing a two-week low and setting the index on course for its first weekly decline in five weeks. Market sentiment weakened after a sharp drop in U.S. stock futures as President Trump left Beijing following two days of talks with Chinese President Xi Jinping, prompting investors to adopt a more cautious stance ahead of the weekend.
On the domestic front, new data showed that Malaysia’s FDI inflows eased in Q1 2026 from the record levels seen in Q4. However, inflows remained relatively resilient despite ongoing external uncertainties. Investors largely shrugged off a modest upward revision to first-quarter GDP growth and a robust current account surplus, choosing instead to wait for April inflation and trade figures due next week for clearer signals on the economic outlook.
Healthcare, industrial, and consumer-related stocks led the decline. Notable losers included Press Metal Aluminium (-1.6%), Petronas (-1.2%), IOI Corp. (-2.2%), and Kuala Lumpur Kepong (-3.2%).
