As Bursa Malaysia is closed for the weekend, there is no trading activity on February 1, 2026. However, weekend articles and analyst recaps provide a comprehensive overview of the past week’s performance and a forward-looking perspective for the market. The KLCI ended the trading week on a down note, closing at 1,730.89 on January 29, down 1.46% from the previous day’s close of 1,756.49. This capped a volatile week where the index initially rallied to multi-year highs before profit-taking set in, resulting in a net weekly decline of approximately 2.3% amid global uncertainties and US Fed anticipation. Analysts remain optimistic for the coming week, expecting a potential rebound supported by foreign inflows, a strengthening ringgit, and resilient domestic demand. The recent launch of the Mini FTSE Bursa Malaysia KLCI Futures (FKLM) on January 26 is seen as a catalyst for increased retail participation.
Movers and Shakers
From the last trading day on January 29, profit-taking dominated, with broad-based selling in financials, industrials, and telcos. However, healthcare and glove makers provided some upside amid sector-specific demand. Notable movers included:
- Hartalega Holdings: Up on glove sector rebound, driven by global health supply chain shifts.
- Top Glove: Gained amid demand recovery.
- IHH Healthcare: Rose on healthcare resilience.
- CIMB: Added in banking despite overall pressure.
- SIME: Increased slightly on industrial stability.
Top losers focused on telcos and chemicals: Maxis and Axiata fell sharply, while Petronas Chemicals eased on commodity volatility. Over the week, blue-chips like Maybank and Public Bank initially led gains but succumbed to consolidation. Analysts forecast the KLCI to climb to 1,810-1,850 by mid-2026, backed by 8.5% earnings growth in key sectors like tech and renewables.
Policy Changes Impacting KLCI and Malaysia’s Market
Domestically, the Overnight Policy Rate (OPR) remains at 2.75%, providing stability as Bank Negara emphasizes resilient growth amid external risks. The 13th Malaysia Plan (13MP) continues to drive digitalisation and sustainability, with Budget 2026’s reforms—including SST expansion, e-invoicing, and carbon tax—aimed at fiscal discipline and green investments. GEAR-uP targets RM120 billion in investments by 2028, supporting projected 4.3-4.5% GDP growth. New minimum salary thresholds for employment passes, effective June 2026, enhance workforce quality.
Globally, US tariffs (19% on Malaysia) persist, but exemptions for semiconductors (40% of exports) and the October 2025 US-Malaysia trade deal mitigate impacts. The IMF highlights risks from AI hype and geopolitical tensions, with global inflation easing to 3.8%. A stable ringgit (around RM4.06/USD) aids equity liquidity, though upcoming Fed decisions could influence sentiment.
Other News Potentially Impacting KLCI or Malaysia’s Market
- Weekly Recap: The KLCI’s volatility reflects global cues, but analysts see support at 1,700 with upside potential from undervalued stocks and AI investments.
- Economic Indicators: Producer prices fell 2.7% in December 2025, signaling contained inflation; 2025 GDP hit 4.9%, with 2026 forecasts steady at 4.3-4.5%.
- Export and Trade: Moderate growth expected via E&E and tourism (Visit Malaysia 2026), though tariffs may temper gains; trade surplus bolsters the ringgit.
- Sector Themes: AI/data centers position Malaysia as a “China+1” hub; M&A in renewables grows; sukuk issuance reached RM264.8 billion in 2025.
- Broader Risks: Geopolitical tensions and Fed policy pauses add uncertainty, but domestic reforms and FDI provide a strong buffer.
The KLCI shows underlying strength heading into February 2026. Reforms and sectoral tailwinds suggest resilience, though external volatility requires monitoring.