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Broad Strength Lifts KLCI Amid Global Tailwinds
Mon, 22-Dec-2025 07:32 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI advanced 1.2% on Friday, tracking strength from regional peers. Market breadth remained positive for the third consecutive day, with 628 advancers outpacing 461 decliners amid continued buying interest from foreign investors. Finance (+2.1%), Consumer (+0.7%) and Plantation (+0.7%) sectors led the gains, supported by strong performances in heavyweight counters such as MAYBANK, PBBANK and CIMB, while Construction (-0.4%) and Industrial Products (-0.3%) were the main laggards.

 

Global Markets Review: Wall Street closed the week on a firm footing, led by a 1.3% surge in the Nasdaq, alongside gains of 0.9% in the S&P 500 and 0.4% in the Dow, as easing inflation pressures and fading concerns over AI valuations lifted risk appetite. Sentiment was further supported by a sharp rally in Oracle following reports that ByteDance had signed agreements to establish a US TikTok joint venture, while Nvidia advanced on news that Washington is reviewing the potential approval of H200 chip sales to China. European markets followed suit, with the STOXX 600 up 0.4% thanks to the spillover from US risk-on sentiment. In Asia, risk appetite also improved, with the Nikkei 225 (+1.0%), the Hang Seng Index (+0.8%) and the KOSPI (+0.7%) all closing up even as the Bank of Japan hikes interest rate to the highest level since 1995.

 

Market Outlook. The FBM KLCI is expected to maintain a constructive bias, supported by sustained institutional participation and positive spillover from a technology-driven rebound on Wall Street. In the US, the University of Michigan’s December consumer sentiment index fell short of expectations, reflecting ongoing affordability pressures and labour market softness that could weigh on consumption. Investors will be closely watching this week’s 3Q US GDP release and initial jobless claims for further guidance on the Federal Reserve’s policy direction, while locally, attention will focus on the domestic inflation print for insights into economic momentum. Buying interest in Malaysian equities is likely to be supported by year-end institutional rebalancing and selective accumulation in heavyweight and domestically oriented stocks.

 

Sector focus. We continue to hold a positive view on selective power-ancillary and renewable energy names, underpinned by long-term energy transition trends that support earnings resilience. In addition, improving global tech sentiment has helped stabilise the AI theme, which could provide a near-term sentiment tailwind for selected local technology and AI related stocks.

 

Technical Commentary: The FBM KLCI continued its upward momentum to close above its previous resistance of 1,660 amid renewed buying interest. Indicators remained positive, with the MACD line trading above the signal line and the RSI remaining above 50. The next resistance is located at 1,680, while support is envisaged around 1,640.

 

Company News (source: various)

Mah Sing Group Bhd and Kuala Lumpur Kepong Bhd’s subsidiary have formed a 60:40 joint venture to acquire and develop 419.15 acres of freehold industrial land in Kulai, Johor, within the Johor-Singapore Special Economic Zone (JS-SEZ).

 

Sunway Construction Group Bhd has secured a RM386 million work order from an unnamed US-based multinational technology company.

 

Gamuda Bhd emerged as the biggest winner in the Energy Commission’s battery storage bidding, securing exposure to two of four successful bids under the MyBeST programme.

 

MyNews Holdings Bhd will pursue aggressive retail expansion in FY2026, leveraging Visit Malaysia Year 2026 to boost footfall.

 

Malakoff Corp Bhd and Solarvest Holdings Bhd, via 80:20 joint venture (JV) Malakoff Silver Solar Sdn Bhd (MSSSB), signed a 21-year power purchase agreement (PPA) with Tenaga Nasional Bhd to supply electricity from a 470MWac solar facility at Windsor Estate, Perak, which MSSSB will design, build, own and operate.

 

Protasco Bhd said its 51%-owned unit Roadcare (M) Sdn Bhd has signed a one-year interim agreement with the government to maintain 7,263km of federal roads across Selangor, Pahang, Terengganu and Kelantan.

 

Omesti Bhd announced its 49%-owned indirect subsidiary, Formis Network Services Sdn Bhd, secured an RM18.25 million IT services contract from the Federal Court of Malaysia.

 

Perdana Petroleum Bhd announced two contracts from Dialog Group Bhd for chartering anchor handling tug supply vessels.

 

Five listed companies have signed 21-year PPAs with Tenaga for solar projects. According to bourse filings, the deals involve subsidiaries and JVs of Jaks Resources BhdSunview Group BhdCypark Resources BhdWawasan Dengkil Holdings Bhd, and Nestcon Bhd.

Sentiment: Positive
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