KUALA LUMPUR (June 15): Malaysian equities were higher on Monday led by banking and technology stocks, while energy stocks fell as oil prices fell following news of the US-Iran peace deal.

The benchmark FBM KLCI opened 6.76 points higher at 1,690.39 and climbed as much as 13.85 points or 0.8% to 1,697.48, before paring gains to settle at 1,691.39, still up 7.76 points or 0.46%.

Among the key movers on the 30-stock index were YTL Corp Bhd (KL:YTL), which has exposure to data centre segment via its unit YTL Power International Bhd (KL:YTLPOWR), gaining 4.55% to close at RM4.55. Meanwhile, CIMB Group Holdings Bhd (KL:CIMB), Malaysia’s second-largest bank by assets, climbed 4.06% to RM7.69. 

Despite the positive momentum, upside for the KLCI may be capped at the 1,720-1,730 range, weighed by concerns over slower economic and earnings growth in the second half of the year, when the impact from the US-Iran conflict kicks in, Hong Leong Investment Bank said in a note.

Political risk premiums are also edging higher ahead of upcoming state elections in Johor and Negeri Sembilan, alongside persistent speculation of an early 16th general election, the house added.

While the US and Iran said they reached an interim agreement to reopen the Strait of Hormuz and halt their conflict, details are still scarce as both sides will iron out the terms over 60 days of negotiations.

Still, investors reacted swiftly to the news. 

Technology stocks rallied as Malaysian Pacific Industries Bhd (KL:MPI) gained RM1.50 or 3.16% to RM50.80, after rising as much as 7% earlier, supported by continued optimism surrounding artificial intelligence and growth-related themes following the strong market debut of SpaceX.

The energy sector, however, retreated along with oil prices. Dialog Group Bhd (KL:DIALOG), the top firm in the sector in terms of market capitalisation, fell over 7.07% to RM1.84.