KUALA LUMPUR, Dec 16 (Bernama) -- Bursa Malaysia extended its positive performance, closing higher for a fourth consecutive session, supported by improving local market sentiment underpinned by a firm domestic macroeconomic backdrop. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.59 points, or 0.28 per cent, to 1,648.31, from Monday’s close of 1,643.72. The index had opened 0.95 of a point lower at 1,642.77, and moved between 1,636.50 and 1,648.71 throughout the trading session However, on the broader market, decliners beat gainers 699 versus 408. A further 520 counters were unchanged, 1,149 untraded and 12 suspended. Turnover rose to 2.59 billion units worth RM2.27 billion from 2.50 billion units worth RM2.16 billion on Monday.
Malaysia Morning Wrap | UEM Sunrise Loses Legal Battle Against RM8.49 Million Tax Assessment and Penalty
Global Market Highlights
Wall Street Hits Fresh Records as AMD, Tesla Rally
S&P 500 Index (.SPX.US)$ 6,753.72 (+0.58%)
Nasdaq Composite Index (.IXIC.US)$ 23,043.38 (+1.12%)
Dow Jones Industrial Average (.DJI.US)$ 46,601.78 (-0.00%)
The S&P 500 and Nasdaq Composite reached new all-time highs, supported by strong performances from major tech names within the “Magnificent Seven.” Nvidia (NVDA.US) climbed 2.2% after confirming its investment in Elon Musk’s AI company, xAI, which is raising up to US$20 billion.
Market optimism was also driven by the Federal Reserve’s September meeting minutes, which signaled the potential for additional rate cuts later this year. Meanwhile, gold futures hit a record high of US$4,081 per ounce as investors sought safe havens amid the ongoing U.S. government shutdown.
Bursa Malaysia Overview
FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ 1,627.50 (-0.16%)
Top Gainer: PPB (4065.MY)$ RM10.98 (+2.81%)
Top Loser: HLBANK (5819.MY)$ RM20.50 (-2.66%)
USD/MYR: 4.2159 (+0.00%)
The FBM KLCI slipped 0.16% to close at 1,627.50, mirroring regional weakness as investors remained cautious over prolonged U.S. fiscal concerns.
Consumer stocks showed resilience following the rollout of the BUDI MADANI RON95 (BUDI95) subsidy initiative, which is expected to lift household spending. Trading activity increased to 3.66 billion shares worth RM2.72 billion, reflecting active rotation into defensive counters.
Regional and Political Developments
Trump’s ASEAN Visit Conditional on Peace Deal Signing
Reports suggest that U.S. President Donald Trump will only attend the upcoming ASEAN Summit in Malaysia if he can preside over the signing of a Thailand–Cambodia peace agreement. The condition, which reportedly includes excluding Chinese representatives, places Malaysia in a diplomatic dilemma. Prime Minister Anwar Ibrahim faces the challenge of balancing U.S. expectations with Malaysia’s strategic economic ties with China, while also exploring a potential U.S.–Malaysia trade agreement.
Policy and Reform Updates
Hire Purchase Reform Bill Passed
Parliament has passed amendments to the Hire Purchase Act, replacing the outdated Rule of 78 with the Effective Interest Rate (EIR) method to ensure fairer and more transparent loan calculations. The reform introduces digital agreements and caps on interest rates. Financial institutions have 18 months to implement the new requirements.
EPF Reform Under Consideration
The government is studying structural reforms to the Employees Provident Fund (EPF) amid concerns about retirement adequacy. Currently, only 23.9% of EPF members aged 18–55 meet the basic savings threshold, while 42% of Malaysian seniors live in relative poverty. Proposed changes include introducing flexible savings and income components for retirees.
Stocks to Watch
| Company | Update | Implication |
|---|---|---|
| UEM Sunrise (5148.MY) | Lost its legal challenge against an RM8.49 million tax assessment and penalty after the Federal Court overturned a previous ruling in its favor. | Negative outcome; potential cash outflow and sentiment risk. |
| SP Setia (8664.MY) | Formed a joint venture with Japan’s Mitsui Fudosan to develop a RM1.3 billion residential project in Semenyih, launching in 2026. | Positive for long-term growth and international collaboration. |
| Varia (5006.MY) | Filed a RM3 billion sukuk murabahah programme with the Securities Commission to fund capital expenditure and refinancing. | Neutral; supports liquidity and funding flexibility. |
| GUH Holdings (3247.MY) | Plans to expand into advanced PCB production and launch a RM1.2 billion property project in Penang. | Positive; diversification into high-value electronics manufacturing. |
| Pecca Group (5271.MY) & Betamek (0263.MY) | Signed an MoU to develop in-flight and in-train entertainment systems. | Positive; new growth opportunities in aviation and transport technology. |
| KNM Group (7164.MY) | Obtained court approval to sell its German subsidiary to NGK Insulators for €270 million as part of its debt restructuring plan. | Positive; strengthens financial recovery efforts. |
| Meridian (5040.MY) | Auditor issued a disclaimer of opinion on its financial statements due to insufficient audit evidence and going-concern uncertainties. | Negative; raises audit and financial stability concerns. |
Market Summary
| Focus Area | Key Theme | Outlook |
|---|---|---|
| Wall Street | Record highs amid tech optimism and dovish Fed tone | Positive |
| Commodities | Gold at new record highs | Bullish safe-haven demand |
| Malaysia | Sideways trading amid global uncertainty | Neutral |
| Property & Industrials | Active deal flow and project launches | Positive |
| Consumer | Supported by BUDI95 subsidy rollout | Positive |
Outlook:
Bursa Malaysia is expected to trade sideways as investors weigh global uncertainty against improving domestic catalysts. Focus remains on property developers, infrastructure-linked stocks, and consumer counters supported by government stimulus.
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