The final trading day of the week in Malaysia ended in the red as geopolitical tensions at home and across the globe drove sentiment down.
The FTSE Bursa Malaysia KLCI, the main gauge of Malaysian stocks, shed 1.40 points to end 0.08% lower at 1,735.75.
"[Malaysian] Prime Minister Anwar's Pakatan Harapan (PH) coalition lost further ground in the Negri Sembilan state elections, following earlier losses in the Johor and Sabah state elections. This marks a sharp reversal from the 2023 state election, when PH emerged as the largest coalition. Prospects for an early federal election this year have receded further, but questions over the stability of the unity government persist. We continue to expect a sharpened policy focus on households and SMEs, as well as a more calibrated pace of fiscal consolidation. The fiscal deficit for 2026 could be revised up slightly by 0.1 percentage points to 3.6% of GDP, even as Petronas dividends for this year are likely to be raised by the end of August," BofA Global Research said in a note.
In corporate news, shares of Tong Herr Resources (KLSE:TONGHER) jumped about 26% on close after it received a take-private proposal from its major shareholders Allrich Corp and Richard Holdings via a selective capital reduction and repayment exercise worth 2.55 ringgit per share.
Meanwhile, shares of AWC (KLSE:AWC) gained over 3% after its Qudotech unit secured a 23.1 million-ringgit subcontract for plumbing, silo tank and internal sanitary works on a data center project.