KUALA LUMPUR, Jan 23 (Bernama) -- Bursa Malaysia’s benchmark index recouped earlier losses to settle higher, maintaining a more than six-year high, buoyed by continued buying interest in technology stocks, while the strengthening of the ringgit against the US dollar further lifted investor sentiment. At 2.27 pm today, the local currency strengthened to 3.9992 versus the greenback, its strongest level in more than seven years. It was last seen at this level on June 18, 2018, at 3.9960/9990. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.85 points or 0.17 per cent to 1,719.99 from yesterday’s close of 1,717.14. The index surpassed its previous peak of 1,719.00 recorded on Feb 26, 2019. The barometer index opened 1.30 points lower at 1,715.84 and moved between an intraday low of 1,711.89 in early trade and a high of 1,723.41 in late afternoon before slipping slightly toward the close. However, market breadth was negative with decl...
Asian equities posted mild gains on Friday as investors stayed cautious ahead of the Bank of Japan’s policy decision, while Malaysian markets are expected to trade sideways with a positive bias following recent strength in the ringgit and steady monetary policy at home.
Regional sentiment improved after Wall Street extended its rebound overnight, supported by easing geopolitical tensions after U.S. President Donald Trump walked back tariff threats on Europe and ruled out the use of force over Greenland.
The MSCI Asia-Pacific ex-Japan Index rose 0.4%, while U.S. futures were little changed, signalling a pause in momentum rather than a fresh risk-on push.
Malaysia Market Lens
For Malaysia, the backdrop remains relatively constructive. Bank Negara Malaysia’s recent decision to keep the OPR at 2.75% continues to anchor domestic sentiment, while strong 2025 trade performance and benign inflation provide support for equities.
The FTSE Bursa Malaysia KLCI, which has rebounded toward the 1,710–1,720 range, may enter a consolidation phase near recent highs as investors await clearer global direction. Analysts expect near-term trading to remain range-bound, with selective buying rather than broad-based chasing.
Meanwhile, the ringgit remains firm near multi-week highs, benefiting from steady capital inflows and a softer US dollar, helping to cushion import costs and improve sentiment for domestically driven sectors.
Rates, FX and Global Signals
The yen weakened slightly ahead of the BOJ meeting, while Japan’s inflation data came in as expected, reinforcing expectations of a hold.
In the U.S., markets are pricing a 96% probability that the Federal Reserve keeps rates unchanged later this month, keeping global liquidity conditions broadly stable for emerging markets like Malaysia.
Gold continued to hover near record levels, reflecting lingering demand for hedges despite the recent rebound in equities — a signal that investors remain cautious beneath the surface.
Key Trading Takeaways for Malaysia Investors
KLCI likely to consolidate, not trend aggressively, after the recent rebound — focus on stock selection rather than index chasing.
Stable OPR + firm ringgit favour domestic consumption, banks and infrastructure-linked names, rather than exporters sensitive to FX strength.
Global risk sentiment has improved, but remains fragile — rallies driven by geopolitics may fade quickly if policy uncertainty resurfaces.
Gold strength suggests caution persists — investors are not fully unwinding defensive positioning.
Tech and AI-linked optimism remains selective, with volatility still high after weak guidance from global chipmakers.
Bottom line:
Malaysia remains relatively insulated compared with peers, supported by steady policy and strong fundamentals, but near-term gains are likely to be measured rather than explosive, with volatility driven more by external headlines than domestic factors.
Comments
Post a Comment