The FTSE Bursa Malaysia KLCI (KLCI) rebounded after recent dips. It closed at 1,705.81 on January 21. This was up 6.75 points or 0.39% from the previous close of 1,699.06. The index opened at 1,700.12. It traded between a low of 1,698.45 and a high of 1,707.23. Bargain hunting drove the gains. Moreover, positive regional cues helped. Trading volume was steady. Gainers outnumbered losers 512 to 478. This showed improved sentiment ahead of Bank Negara’s policy meeting.
Movers and Shakers
The KLCI’s rise came from buying in financials and utilities. For example, banking stocks led after recent weakness. However, plantations lagged. Top gainers included:
- Hong Leong Financial Group (HLFG): Up RM0.56 to RM20.84 on resilient demand.
- Dutch Lady Milk Industries (DLADY): Rose RM0.50 to RM31.78 amid consumer strength.
- Fraser & Neave (F&N): Gained RM0.44 to RM36.16 in food sector plays.
- Malaysian Pacific Industries (MPI): Added RM0.44 to RM34.00 on tech recovery.
- Petronas Gas (PETGAS): Increased RM0.38 to RM18.80, tied to energy stability.
On the other hand, top losers hit plantations and select industrials. United Plantations (UTDPLT) fell RM0.50 to RM30.70. Kuala Lumpur Kepong slipped amid commodity swings. High-volume actives featured SMRT Holdings and CapitalA. Analysts see upside to 1,730-1,850 by mid-2026. This is based on 8% earnings growth, led by banks and infrastructure.
Policy Changes Impacting KLCI and Malaysia’s Market
Domestically, the 13th Malaysia Plan (13MP) pushes reforms. It targets digitalisation and green growth. Budget 2026 expands revenue via SST and e-invoicing. Furthermore, green incentives aim for 4.5% GDP. GEAR-uP seeks RM120 billion investments by 2028. NIMP 2030 boosts tech. A carbon tax starts, aiding ESG goals. These lift infrastructure and renewables.
Globally, US tariffs (19% on Malaysia) loom. However, exemptions for semiconductors (40% exports) help. The October 2025 US-Malaysia deal eases risks. Growth holds at 4.3%. Ringgit at RM4.06/USD supports liquidity. OPR stays at 2.75%. WEF notes downturn risks and 1.6% inflation. Still, new deals counter tensions.
Other News Potentially Impacting KLCI or Malaysia’s Market
- Economic Growth Data: 2025 GDP hit 4.9%, above forecasts. Q4 rose 5.7% on demand. 2026 outlook: 4.3-4.5%.
- Export Outlook: Growth cools in 2026 due to tariffs. Yet, E&E and tourism (Visit Malaysia 2026) drive it. Trade surplus aids ringgit.
- Sector Themes: AI/data centers position Malaysia as “China+1” hub. M&A in renewables grows. Sukuk issuance reached RM264.8 billion in 2025. Khazanah boosts grids and chips.
- Broader Risks: Geopolitical tensions (US-China, tariffs) add uncertainty. Fed pause and asset bubbles threaten. However, FDI and reforms buffer it.
Overall, KLCI shows strength in 2026. Reforms and demand support it. Yet, watch global risks.