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: Malaysia’s equity market is expected to perform more robustly in 2026, aided by easing U.S. interest rates, a softer dollar, and renewed government-led reform momentum.
Market Snapshot
| Index | Latest | Change |
|---|---|---|
| FTSE Bursa Malaysia KLCI | — | -0.31% |
RHB Investment Bank’s analyst Alexander Chia expects Malaysia’s equity market to gain strength next year as both external and domestic factors align to support recovery.
Key Drivers of Optimism
Global Tailwinds:
Improved clarity on tariffs and trade policy.
Easing U.S. rates expected to boost regional liquidity.
Softer U.S. dollar may attract foreign inflows into emerging markets.
Domestic Catalysts:
Ongoing economic reform efforts by the Malaysian government.
Record-low foreign ownership levels offer ample room for re-rating.
Growth initiatives expected to strengthen domestic demand and investment confidence.
Investment Opportunities
Chia sees value emerging across:
Laggard stocks with room for catch-up gains.
Small- to mid-cap counters poised to benefit from policy-driven growth.
Quality large-cap names providing stability and earnings visibility.
He also expects rising investor attention on:
The Johor–Singapore Special Economic Zone (SEZ).
Sarawak-based projects and industrial expansion.
Infrastructure development, a recurring government priority.
Macro and Commodity Outlook
Chia added that a weaker U.S. dollar trend could increase demand for gold and other precious metals, as global investors hedge against geopolitical risk and potential U.S. policy volatility.
He also noted that Trump’s trade stance and containment policies toward China could accelerate global de-dollarization and strengthen cooperation among BRICS nations, further reshaping capital flows into emerging markets.
Summary
Malaysia’s market fundamentals are improving heading into 2026.
With global monetary easing, domestic policy reforms, and low foreign positioning, analysts see scope for sustained recovery across cyclical and value-driven sectors.
Outlook: Favor selective accumulation of mid-cap and infrastructure-related plays ahead of Budget 2026 and potential liquidity-driven re-ratings.
Comments
Post a Comment