The FTSE Bursa Malaysia KLCI (KLCI) snapped its five-day winning streak on January 28. It closed at 1,756.49, down 14.76 points or 0.83% from the previous close of 1,771.25. The index opened at 1,769.79. It traded between a low of 1,753.70 and a high of 1,769.90. Profit-taking pulled it lower amid cautious sentiment ahead of US Big Tech earnings and FOMC meeting. In addition, trading volume was moderate at 186.58 million shares. Decliners outnumbered gainers, reflecting a shift after recent rallies.
Movers and Shakers
The KLCI’s decline stemmed from selling in telecommunications and chemicals. Yet, healthcare and plantations provided some cushion. For instance, gloves makers surged. Top gainers included:
- Hartalega Holdings (HARTA): Up 8.43% on demand recovery.
- Top Glove (TOPGLOV): Rose 5.83%, tied to sector rebound.
- IHH Healthcare (IHH): Gained 1.26% amid healthcare strength.
- Kuala Lumpur Kepong (KLK): Added 1.11% on palm oil stability.
- Hong Leong Financial Group (HLFG): Increased 0.64% in financials.
On the flip side, top losers hit telcos and banks. Maxis fell 3.04%. Axiata dropped 2.98%. Petronas Chemicals eased 2.95%. CIMB declined 2.46%. MISC slipped 2.09%. High-volume actives featured glove stocks and cyclicals. Analysts eye a rebound to 1,810 by end-2026. This is based on 8.5% earnings growth.
Policy Changes Impacting KLCI and Malaysia’s Market
Domestically, Bank Negara held OPR at 2.75%. This supports growth amid solid fundamentals. The 13MP accelerates digital reforms. Budget 2026 broadens revenue via SST and e-invoicing. Green incentives aim for 4.3-4.5% GDP. Fiscal deficit targets 3.5%. GEAR-uP seeks RM120 billion investments by 2028. NIMP 2030 boosts tech. Carbon tax aligns with ESG.
Globally, US tariffs at 19% on Malaysia loom. But exemptions for semiconductors (40% exports) help. October 2025 deal mitigates risks. IMF projects resilient growth but warns of AI hype. Inflation eases to 3.8%. Ringgit strength aids liquidity. Policy certainty and reforms drive sentiment.
Other News Potentially Impacting KLCI or Malaysia’s Market
- Ringgit Rally: Hit five-year high below RM4/USD. This boosts inflows and sentiment.
- GDP Outlook: 2025 hit 4.9%. 2026 at 4.3-4.5%, driven by demand and exports.
- Sector Themes: AI/data centers position Malaysia as hub. Renewables M&A rises. Sukuk issuance high in 2025.
- Broader Risks: Trade frictions and FOMC add caution. Yet, diversified economy buffers.
Overall, KLCI pauses after rally in 2026. Fundamentals support rebound. Still, watch global cues.