Stocks in Malaysia Hit 7-year High

The FBM KLCI rose 13 points, or 0.7%, to 1,757 in morning trade on Tuesday, extending gains for a fifth consecutive session and hitting its highest level since October 2018, supported by strong buying in blue-chip stocks amid a firmer ringgit. Solid domestic economic data and policy fundamentals also continued to lift sentiment. Flash data showed Malaysia’s GDP grew 5.7% yoy in Q4 2025, accelerating from a 5.2% expansion in Q3 and marking the strongest growth since Q2 2024. Meanwhile, the central bank held its key rate at 2.75% last week, with headline inflation expected to remain moderate in 2026. However, traders are awaiting the Fed’s monetary policy decision and the release of China’s PMI later this week. Financial services continued to drive the index, followed by industrial products and services, and utilities, with notable gains in Public Bank Bhd (1.6%), Hong Leong Financial Group (1.2%), Hong Leong Bank (1.1%), Maybank (0.9%), and CIMB Holdings (0.8%).

FKLCI increased to 1759.00 Index Points, the highest since October 2018. Over the past 4 weeks, FTSE Bursa Malaysia KLCI Index gained 4.59%, and in the last 12 months, it increased 13.23%.

The FBM KLCI climbed 12 points, or 0.7%, to 1,732 in early deals on Monday, extending gains for a fourth straight session and hitting its highest level since mid-October 2018, as a stronger ringgit and solid domestic data continued to lift sentiment. Flash data showed Malaysia’s GDP grew 5.7% yoy in Q4 2025, accelerating from a 5.2% expansion in Q3 and marking the strongest growth since Q2 2024. Meanwhile, the central bank held its key rate at 2.75% last week, with headline inflation expected to remain moderate in 2026. However, traders are awaiting the Fed’s monetary policy decision and the release of China’s PMI later this week. The financial services continued to drive the index, with notable gains in Hong Leong Financial Group (1.9%), CIMB Group Holdings (1.3%), Hong Leong Bank (1.3%), and Maybank (0.9%). Other sectors also posted gains, including construction, with IJM Corporation rising 2.7% after news that the EPF increased its stake in the construction firm to over 20%.