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KLCI Advances as Wall Street Hits Record Highs
Fri, 26-Dec-2025 07:29 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI (+0.1%) edged marginally higher after a tight range-bound session on Wednesday, extending its winning streak to five straight sessions. Market breadth was positive with 501 advancers outpacing 483 decliners, although lower liners largely ended in negative territory. Sector wise, Construction (+1.2%), Utilities (+0.6%) and Plantation (+0.5%) led gains, while Property (-0.5%) and Technology (-0.3%) were the main laggards.

 

Global Markets Review: Wall Street rode into the Christmas holiday on a high note as the Dow gained 0.6% and S&P 500 rose 0.3% to close at respective record highs. Meanwhile, the tech-heavy Nasdaq ended up 0.2% in a shortened session, as US stock exchanges closed early on Christmas Eve. The rally was supported by a stronger-than-expected labour market as initial unemployment claims fell for the second consecutive week by 10,000 to 214,000 against a market expectation of 223,000. In Europe, equities ended flat after the STOXX 600 reached fresh highs on Tuesday. Asian markets were a mixed bag, with the Shanghai Composite Index rising 0.5% after the People’s Bank of China signalled scope for incremental policy easing next year, while the Nikkei gained 0.1% and the KOSPI ended down 0.2%.

 

Market Outlook. We expect the FBM KLCI to trade with a mild upward bias today, underpinned by improving global risk sentiment and a resilient US equity backdrop, where the S&P 500 and Dow Jones continued to register fresh highs despite ongoing volatility in the technology sector. While the benchmark index has demonstrated relative resilience, weaker participation across the broader market suggests investors remain selective. Near-term support is likely to stem from year-end institutional rebalancing with targeted accumulation of heavyweight and domestically driven names, although persistent foreign selling could limit the scope for a sustained rally.

 

Sector focus. We remain positive on selective power-ancillary and renewable energy names, supported by long-term energy transition trends that underpin earnings resilience and continue to attract investor rotation amid heightened global trade uncertainty. 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 posted its fifth consecutive day of gains to maintain momentum above all major moving averages. 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)

Apex Healthcare Bhd said Pharmora Investment Holdings Pte Ltd has lifted its stake to 91.65% after its takeover bid turned unconditional on Dec 22.

 

Sapura Industrial Bhd is selling its 35,332-sq-m freehold land in Seremban for RM24.72 million cash, booking a RM6.7 million gain.

 

NuEnergy Holdings Bhd will sell its 50% stake in Integrated Mits Sdn Bhd to Mitsui-Soko International Pte Ltd for RM24.5 million, booking a RM10.16 million gain.

 

Packaging products manufacturer Jishan Bhd plans to transfer its listing from Bursa Malaysia’s LEAP Market to the ACE Market to broaden investor participation and fundraising.

 

Borneo Oil Bhd said its 13.45%-owned US associate, Verde Resources Inc, has filed with the US Securities and Exchange Commission for a Nasdaq public offering to raise between US$5 million and US$8 million.

Sentiment: Positive
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