Malaysian blue-chip index rebounded to end week in the green zone, thanks to the easing unemployment in the country.

The blue-chip index FBM KLCI gained 0.5% or 7.44 points to end higher at 1,608.45.

In economic news, Malaysia's seasonally adjusted unemployment rate inched down to 2.9% in August from 3% in the past four months, data from the Department of Statistics Malaysia, Ministry of Economy. The figure missed the Trading Economics forecast of 3%.

Malaysia's Industrial Production Index (IPI) rose 5% year over year in August, according to data released on Friday by the Department of Statistics Malaysia (DOSM). The sentiment index rose from the 4.7% increase recorded the previous month.

Moreover, Malaysia's retail trade sales increased 6.5% year over year in August 2026, according to data from the DOSM.

In corporate news, shares of MTAG (KLSE:MTAG) gained about 3% on close after it signed a letter of intent to acquire 100% equity interests in L.H. Label (M), and L.H. Labelprint for an indicative 13.8 million ringgit.

Shares of Unisem (M) (KLSE:UNISEM) gained over 1% on Friday's close after it disclosed plans to invest around 396 million ringgit for its proposed second phase of expansion of the Gopeng Plant in Malaysia.