KUALA LUMPUR, Dec 12 (Bernama) -- Bursa Malaysia’s key index closed higher today on bargain hunting, in line with positive investor sentiment across regional markets, consolidating at its highest level in more than two months — a level last seen on Oct 2, 2025. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.42 points, or 0.76 per cent, to 1,637.81, compared with Thursday’s close of 1,625.39. The benchmark index opened 2.83 points lower at 1,622.56, thereafter edged down to an early low of 1,622.03, before staging an uptrend to an intraday high of 1,640.36 in late trading. Market breadth was positive, with gainers trouncing decliners at 743 versus 387. Another 530 counters were unchanged, 1,108 untraded, and 16 suspended. Turnover increased to 3.09 billion units worth RM2.46 billion from 2.99 billion units worth RM2.35 billion on Thursday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI ended higher on continued...
Key Takeaway: Iron ore futures extended gains for a sixth consecutive day, climbing past US$107 a tonne to reach their highest level in more than six months, driven by Chinese restocking demand and expectations of stronger steel production.
Market Rally
Singapore futures: Up 1.9% to US$107.45 a tonne as of 10:42 a.m. local time.
Dalian yuan-priced futures: Hit their highest since July.
Shanghai steel futures: Also advanced, reflecting improved demand outlook.
The rally marks the longest winning streak since January.
Drivers Behind the Surge
Chinese demand:
Restocking accelerated after steel mills resumed operations post-military parade.
The event, commemorating 80 years since Japan’s WWII defeat, had led to temporary production cuts in northern China to reduce pollution.
Market sentiment:
Analysts at CITIC Securities noted “significant downstream demand rebound” post-parade.
Optimism over potential U.S. Federal Reserve interest rate cuts further supported commodities.
Base Metals Move Higher
Copper: Rose 0.4% to US$9,955.50 a tonne on the LME.
Aluminium: Gained 0.2%, extending momentum after its biggest two-week rise driven by a surge in LME warehouse orders.
Outlook
With China entering its peak construction and manufacturing season, iron ore demand is expected to remain firm. Analysts caution, however, that further gains depend on sustained steel output and broader macroeconomic support, particularly from Beijing’s stimulus measures and U.S. monetary policy easing.
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