KUALA LUMPUR: Malaysia’s stock market started 2025 on a subdued note. Profit-taking activities following the year-end rally led to cautious trading. This trend was in line with most regional markets, as geopolitical tensions weighed on investor sentiment.
Profit-Taking Amid Uncertainty
Rakuten Trade Sdn Bhd’s equity research vice-president, Thong Pak Leng, observed that traders are reallocating assets cautiously. The FTSE Bursa Malaysia KLCI (FBM KLCI) faced consolidation pressures due to limited catalysts in the market.
Thong predicted, “The index may trend between 1,625 and 1,635 until new drivers emerge.”
China’s Manufacturing Slump Adds Pressure
Weak manufacturing data from China impacted Malaysian stocks. Stephen Innes from SPI Asset Management highlighted how the slowdown in Chinese markets affected exporters like Malaysia. He also noted that while construction and services in China showed positive signs, they failed to boost overall sentiment.
“Holiday-thinned trading conditions are likely to persist until January 6,” Innes added. Global investors are still largely absent.
Key Market Highlights
By the end of the trading day:
- FBM KLCI dropped 9.46 points (0.58%) to 1,632.87.
- Decliners (580) outpaced gainers (449).
- 2.64 billion shares were traded, valued at RM1.97 billion.
Regional and Sectoral Trends
Key regional indices reflected cautious trading:
- Nikkei 225: -0.96% to 39,894.54
- SSE Composite Index: -2.66% to 3,262.56
- Hang Seng Index: -2.18% to 19,623.32
- Straits Times Index: +0.16% to 3,794.57
Sectoral performance was mixed. Financial services, industrial products, and plantations dragged the market. However, the energy sector showed modest gains.
Looking Ahead
The broader market remains cautious as trading volumes are still light. Analysts suggest monitoring geopolitical developments and key economic indicators for potential catalysts.