0353 GMT - Malaysia's benchmark Kuala Lumpur Composite Index may face limited near-term impact from the escalating U.S.-Iran conflict, CIMB Securities analyst Ivy Ng Lee Fang says in a note. This is due to the subsidized RON95 fuel prices remaining capped at MYR1.99/liter, she says. Higher crude prices could benefit energy stocks, such as Hibiscus Petroleum, Dialog and MISC. Companies with Middle East exposure include IHH Healthcare, YTL Power International may face pressure. She adds airlines, tourism, construction and building-material names will also likely be affected, noting historical trends show geopolitical conflicts typically trigger short-term volatility but limited long-term impact on the KLCI. Heightened tensions may raise equity risk premiums if the conflict becomes prolonged, Ng says. CIMB maintains its end-2026 KLCI target at 1754, with the index currently trading 0.3% higher at 1717.59. (yingxian.wong@wsj.com)

(END) Dow Jones Newswires

March 05, 2026 22:53 ET (03:53 GMT)

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