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KLCI Rises on Tech Rally
Tue, 06-Jan-2026 07:40 am
by Research Team • Apex Research

Market Review & Outlook

Malaysia Market Review: The FBM KLCI gained 0.6% to close at 1,680.3 yesterday, as a rally in technology stocks lifted market sentiment. Market breadth turned positive, with 642 gainers outpacing 454 losers. All sectors ended in the green except Transportation & Logistics (-0.7%), while Property (+1.8%), Finance (+1.2%), Technology (+1.2%) and Industrial Products (+1.0%) were the main contributors to the index’s advance.

 

Global Markets Review: Wall Street closed higher on Monday, with the Dow (+1.2%), S&P 500 (+0.6%) and the Nasdaq (+0.7%) advancing, as strength in oil stocks following US military action in Venezuela and renewed optimism over AI-related demand lifted market sentiment. Shares of US oil majors climbed on expectations that they would benefit from the reconstruction of Venezuela’s energy infrastructure, with Chevron gaining 5.1% and Halliburton jumping 7.8%. In Europe, the Stoxx 600 closed higher (+0.94%) as markets digested recent developments in Venezuela and its broader geopolitical implications. Gains were driven mainly by defence and aerospace stocks. In Asia, markets mostly closed higher, with Japan’s Nikkei (+3.0%) and South Korea’s Kospi (+3.4%) rising as defence and technology stocks outperformed.

 

Market Outlook. We expect the FBM KLCI to extend its gains, tracking positive momentum from US markets, particularly strength in oil and AI-related sectors. Investors will remain focused on US monetary policy and the upcoming US nonfarm payrolls on Friday, with consensus expecting payroll growth of around 55,000, which could influence global risk sentiment. Buying momentum in the local bourse is likely to be driven by positive cues from global markets, recent geopolitical developments in Venezuela, and optimism in key sectors including energy and technology.

 

Sector focus. We maintain a positive view on selected power-ancillary and renewable energy stocks, driven by stable demand and long-term energy transition trends. Consumer staples remain attractive, supported by steady domestic consumption and upcoming government financial assistance. During periods of market uncertainty, we favour safe-haven sectors such as REITs, which could benefit from increased activity linked to Visit Malaysia 2026. 

 

FBMKLCI Technical Outlook

 

Technical Commentary: The FBM KLCI traded higher, forming a bullish marubozu candlestick, signalling strong buying momentum and potential continuation of the upward trend. Indicators remained positive, with the MACD line trading above the signal line and the RSI remaining above 50. The next resistance is located at 1,700, while support is envisaged around 1,640.     

 

Company News (source: various)

CIMB Group Holdings Bhd said its investment banking arm, CIMB Investment Bank Bhd, together with 11 other parties, has been hit with a RM1.38 billion lawsuit by MEX II sukuk holders seeking to recover alleged losses from the sukuk murabahah investment.

 

Apex Healthcare Bhd is set to be delisted after Pharmora Investment Holdings Pte Ltd and persons acting in concert raised their stake to 95.43%, surpassing the 90% threshold required for privatisation, with trading suspension effective Jan 13.

 

MMAG Holdings Bhd saw its largest shareholder, Datuk Seri Farhash Wafa Salvador Rizal Mubarak, dispose of his entire 19.9% stake for RM87.3 million at a premium and step down as chairman.

 

Sunway Bhd acquired three land parcels in Selangor and Penang for RM179.8 million to expand its land bank and strengthen its presence in key urban growth corridors.

 

Ingenieur Gudang Bhd disposed of a 1.9-acre land with a factory and office in Nilai for RM22 million, with proceeds earmarked for working capital and potential long-term opportunities.

 

Zetrix AI Bhd said its blockchain-based age verification solution has been endorsed by Mimos Bhd’s My Blockchain Infrastructure, supporting Malaysia’s regulatory sandbox ahead of the planned under-16 social media ban.

Sentiment: Positive
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.041962 4.074327
EUR 4.738828 4.744045
CNY 0.580214 0.580826
HKD 0.519261 0.522926
SGD 3.154203 3.176653