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...
Key Takeaways
Rakuten Trade raises FBM KLCI target to 1,810
KLCI pauses after five-day rally despite strong Q4 GDP
Malaysia’s Q4 2025 GDP grew 5.7%, beating forecasts
2026 earnings growth projected at 7.1%
Banking and plantation sectors seen as key drivers
Ringgit forecast to strengthen to RM3.80–4.00
Malaysia’s equity market paused after a strong run, but broker optimism is clearly rising.
The FTSE Bursa Malaysia KLCI snapped its five-day rally, easing 0.14% to 1,712.74, even as Malaysia’s Q4 2025 GDP beat expectations at 5.7%. For the week, the index still delivered a solid 1.55% gain, reflecting underlying market resilience.
On Wall Street, sentiment turned cautious as tech stocks pulled back, offsetting gains in selected financial names. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all ended marginally lower, with investors trimming exposure after recent tech-led rallies.
Despite the short-term dip, Rakuten Trade struck an upbeat tone on Malaysia’s market outlook. The firm raised its year-end FBM KLCI target to 1,810 from 1,730, citing improving earnings visibility, supportive macroeconomic conditions, and sectoral strength. Notably, the KLCI recently surpassed its 2019 peak, reaching a new high of 1,721.48.
Rakuten expects 7.1% earnings growth in 2026, led by banking and plantation sectors, while forecasting the ringgit to strengthen to between RM3.80 and RM4.00 against the US dollar — a development that could further support equity valuations. Construction and infrastructure activity are also expected to remain firm, even as automotive sales moderate slightly.
Foreign selling remains a headwind, with RM22.6 billion in net outflows year-to-date, but foreign shareholding is holding steady at 19%, suggesting selling pressure has not materially destabilised the market.
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