Bursa Malaysia extended its pullback on January 29 amid intensified profit-taking. The FTSE Bursa Malaysia KLCI (KLCI) fell 25.60 points or 1.46% to close at 1,730.89 from the previous day’s close of 1,756.49. The index opened 3.18 points lower at 1,753.31. It hit a high of 1,753.31 and a low of 1,719.52. This marked a second straight decline after a strong prior run. Trading volume slipped to 3.06 billion shares. Decliners outnumbered gainers in a broad-based consolidation. Sentiment was cautious ahead of US Fed’s rate decision and Big Tech earnings.
Movers and Shakers
The KLCI’s drop came from selling across sectors. For example, financials and industrials weakened. However, some healthcare stocks bucked the trend. Top gainers included:
- CIMB: Up 33 sen to RM8.95 in banking.
- SIME: Rose 8 sen on industrial recovery.
- Hartalega Holdings: Gained amid glove demand.
- Top Glove: Added on sector rebound.
- IHH Healthcare: Increased on healthcare strength.
On the other hand, top losers hit telcos and chemicals. Maxis fell. Axiata dropped. Petronas Chemicals eased. High-volume actives included cyclicals. Analysts see potential rebound to 1,810 by end-2026 on 8.5% earnings growth.
Policy Changes Impacting KLCI and Malaysia’s Market
Domestically, Budget 2026 maintains targeted fiscal policy. It supports growth through SST expansion, e-invoicing, and carbon tax. Green incentives target 4.3-4.5% GDP. OPR held at 2.75%. GEAR-uP aims for RM120 billion investments by 2028. NIMP 2030 boosts tech. Reforms enhance monetary flexibility.
Globally, US tariffs at 19% on Malaysia persist. But exemptions insulate 60% of exports, including semiconductors. October 2025 deal helps. IMF warns of AI hype and geopolitics. Fed pause adds caution. Yet, policy support remains.
Other News Potentially Impacting KLCI or Malaysia’s Market
- Producer Prices: Fell 2.7% in December 2025, down from 1.8%. Annual drop of 2.0% for 2025.
- Ringgit Strength: Hit five-year high below RM4/USD. Boosts sentiment and inflows.
- GDP Outlook: 2025 hit 4.9%. 2026 at 4.3-4.5%, driven by demand.
- Sector Themes: AI/data centers make Malaysia a hub. Renewables M&A rises.
- Broader Risks: Trade frictions and Fed pause add uncertainty. But reforms buffer.
Overall, KLCI consolidates in early 2026. Strong fundamentals aid resilience. Yet, global cues warrant caution.