The FTSE Bursa Malaysia KLCI (KLCI) closed higher on January 22. It ended at 1,717.14, up 11.33 points or 0.66% from the previous close of 1,705.81. The index opened at 1,715.20. It traded between a low of 1,713.09 and a high of 1,721.48. Gains stemmed from financials and plantations. Positive sentiment came from OPR status quo and easing geopolitical tensions. In addition, trading volume was solid. Gainers outnumbered decliners.
Movers and Shakers
The KLCI’s advance drew from broad buying. For instance, financials and plantations led. Tech and consumers also supported. Top gainers included:
- Public Bank Bhd: Up 1.5% on resilient demand.
- CIMB Holdings: Rose 1.0% amid banking strength.
- Maybank: Gained 0.9% in financial plays.
- RHB Capital: Added 0.8% on sector recovery.
- Press Metal: Hit new high of RM7.40, up on aluminium demand.
On the flip side, top losers affected select industrials. Petronas Chemicals eased amid volatility. High-volume actives included VELESTO, PMETAL, ZETRIX. Analysts forecast 1,810 by end-2026. This rests on 8.5% earnings growth, led by banks and heavyweights.
Policy Changes Impacting KLCI and Malaysia’s Market
Domestically, Bank Negara held OPR at 2.75%. This supports stability amid resilient demand. The 13th Malaysia Plan (13MP) drives digital and green reforms. Budget 2026 broadens revenue via SST and e-invoicing. Green incentives target 4.5% GDP growth. GEAR-uP aims for RM120 billion investments by 2028. NIMP 2030 boosts tech. Carbon tax aligns with ESG.
Globally, Trump’s tariff pullback on EU lifts sentiment. US tariffs on Malaysia at 19%, but exemptions for semiconductors (40% exports) help. October 2025 US-Malaysia deal eases risks. Growth at 4.3-4.5%. Ringgit stable at RM4.06/USD aids flows. WEF notes downturn risks and 1.6% inflation. New deals offset tensions.
Other News Potentially Impacting KLCI or Malaysia’s Market
- Economic Growth Data: 2025 GDP hit 4.9%, above forecasts. Q4 surged 5.7%. 2026 outlook: 4.3-4.5%.
- Export Outlook: Growth moderates to 4.6% in 2026 due to tariffs. E&E, tourism (Visit Malaysia 2026) key drivers. Trade surplus bolsters ringgit.
- Sector Themes: AI/data centers make Malaysia “China+1” hub. M&A in renewables rises. Sukuk issuance at RM264.8 billion in 2025. Oil & gas grows to USD9.66 billion by 2026.
- Broader Risks: Geopolitical tensions (US-China, tariffs) create uncertainty. Fed pause, asset bubbles loom. Yet, FDI and reforms buffer.
Overall, KLCI displays strength in 2026. Reforms and demand fuel it. Still, monitor global risks.