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KLCI Slips amid Thin Holiday Trading
Mon, 29-Dec-2025 07:44 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI closed marginally lower by 0.1% last Friday, dragged by profit-taking amid thin holiday trading. Sentiment remained cautious as selling pressure in selected heavyweights including MAYBANK and IHH weighed on the broader market. Market breadth was negative, with 504 decliners outpacing 377 advancers. Most sectors ended in the red, led by Construction (-1.2%), Technology (-0.8%) and Telecommunications & Media (-0.5%). Meanwhile, Plantation edged higher (+0.3%).

Global Markets Review: Wall Street were little changed on Friday following the Christmas holiday. The Dow and S&P 500 edged down 0.04% and 0.03% respectively, closing just below their record highs, while the tech-heavy Nasdaq slipped 0.1%. Meanwhile, European markets were closed for Boxing Day. In Asia, major benchmarks traded higher, with Japan’s Nikkei 225 (+0.7%) and South Korea’s KOSPI (+0.5%) rising on gains in technology stocks.  

Market Outlook. We expect the FBM KLCI to trade range-bound with a mild positive bias today, as equities typically fared well during the seasonal “Santa Claus rally”, which spans the final five trading days of December and the first two of the new year. Year-end institutional rebalancing should also provide near-term support, particularly for heavyweight and domestically driven names. That said, thin liquidity in this holiday-shortened week may cap the upside. Globally, while the upcoming release of FOMC minutes on Wednesday could offer further clarity on the Fed’s policy outlook, prevailing expectations of a Fed easing cycle should continue to support sentiment heading into 2026.

Sector focus. We remain positive on selective power-ancillary and renewable energy names, underpinned by long-term energy transition trends that support earnings resilience and ongoing investor rotation amid prolonged global trade uncertainty. We also expect the global technology sector to remain resilient going into next year, which should benefit selected local technology and AI-related stocks. Meanwhile, we favour domestic-oriented consumer staples, supported by a firmer ringgit and an improving domestic economic outlook.

Technical Commentary: The FBM KLCI closed lower following its recent rally, forming a dragonfly doji candlestick that could signal a potential shift in market sentiment. 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)

TRC Synergy Bhd has secured a RM550.8 million contract from SRS Consortium Sdn Bhd for the Penang LRT Mutiara Line.

NationGate Holdings Bhd will acquire Valeo Malaysia CDA Sdn Bhd from French automotive supplier Valeo SE for RM60.89 million in cash.

PETRONAS Gas Bhd has announced revised tariffs for gas transportation and regasification services under Regulatory Period 3 (RP3), which runs from January 2026 to December 2028.

Gas Malaysia Bhd said its base average tariff for natural gas distribution will rise to RM1.880 per GJ/day under RP3 (Jan 2026–Dec 2028).

Resintech Bhd has secured a RM16.07 million contract to supply plastic water pipes and fittings in Cambodia.

Tanco Holdings Bhd's 79%-owned Midports Holdings Sdn Bhd appointed Hong Kong-based Ocean Bridge International Ports Management Co Ltd to operate its proposed smart artificial intelligence (AI) container port in Port Dickson.

Sentiment: Neutral
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