Why Bursa Malaysia is Feeling the Chills from the US Fed and Global Sentiment
If you opened your trading app during lunch today, you might have seen more red than green. By midday on February 20, 2026, Bursa Malaysia was trading slightly lower, with the FBM KLCI slipping about 1.96 points to settle around the 1,750 level. After a pretty good run post-Chinese New Year, it feels like the market is taking a “rest” or what the pros call a consolidation phase.
The reason isn’t that our local companies are doing bad—actually, Malaysia’s January exports just jumped nearly 20%! The real “vibe killer” is coming from the US. The Federal Reserve (the Fed) has been giving out some “hawkish” signals, making investors a bit kiasi (scared) about interest rates staying high for longer. When the big brother in the US sounds tough, global money tends to play it safe, and our local market feels the pinch.
Bursa Malaysia The “Hawkish” Cues and Global Headwinds
So, what exactly happened? Basically, the US Fed minutes suggested they aren’t in a rush to cut rates. This “hawkish” tone (think of an aggressive hawk) pushed the US Dollar higher, which usually isn’t great news for Asian emerging markets. On top of that, ongoing Middle East tensions are keeping everyone on their toes.
When you look at Bursa Malaysia today, the losers (around 624) were way more than the gainers (only 260). Big names like Public Bank, CIMB, and Tenaga Nasional were all slightly down. It’s like everyone is just waiting for more clarity. But interestingly, Maybank and Nestle actually went up—showing that people are still buying into solid, defensive names even when the overall mood is a bit sour.
Is This a Reason to Panic? Not Really
A lot of people might see the red and think “habis lah,” but experts from Hong Leong Investment Bank say this pullback is actually “constructive.” It’s basically a healthy “breather” after the recent rally. Plus, our trade data is super strong—exports to the US and China are hitting double-digit growth, especially in the E&E (Electrical and Electronics) sector.
Wait-and-see is the current game. With the dividend season coming up for banks and corporate earnings being reported, most institutional players are just rebalancing their portfolios. Simple put: the market is just clearing out some “froth” before it tries to test the 1,770 resistance level again.
At the end of the day, midday dips like today’s are part and parcel of the stock market cycle. While the external “noise” from the US Fed can be annoying, our local economic fundamentals—like that massive 19.6% jump in January exports—provide a pretty solid floor. It’s a good time to stay calm, watch the quality stocks, and maybe not refresh your trading app every five minutes!
