Market Review & Outlook
Malaysia Market Review: The FBM KLCI extended its rally, rising 0.75% to close near a seven-year high of 1,708.20, supported by firm buying interest in heavyweight banking stocks. Market breadth was largely neutral, with 554 advancers against 549 decliners. Sector-wise, Finance (+1.15%), Utilities (+1.02%) and Industrial products (+0.51%) outperformed, while Plantation (-1.15%), Transportation & Logistics (-0.87%) and Technology (-0.79%) were the main laggards.
Global Markets. Wall Street closed lower on Tuesday, with the Dow (-0.80%), S&P 500 (-0.19%) and Nasdaq (-0.10%) retreating as policy and regulatory concerns outweighed encouraging US inflation data. Financials led the decline, with JPMorgan Chase sliding 4.2% despite beating earnings expectations, as Donald Trump’s proposal to cap credit card interest rates at 10% raised concerns over potential margin compression. Spillover pressure weighed on Goldman Sachs, Mastercard and Visa. European equities edged lower, with the STOXX 600 (-0.08%) and FTSE 100 (-0.03%) weighed down by weakness in construction stocks. Asian equities ended mostly higher, with the Nikkei 225 (+3.10%), KOSPI (+1.47%) and Hang Seng Index (+0.90%) posting gains. In contrast, Thailand’s SET (-0.56%) retreated.
Market Outlook. Malaysian equities are expected to trade with a cautious bias, balancing firm domestic fundamentals against external policy-driven volatility. Investor focus is likely to remain on global rate expectations and cross-border fund flows, while episodic geopolitical and regulatory headlines may trigger short-term risk-off moves. That said, underlying support from steady domestic growth, healthy liquidity conditions and selective earnings resilience should help anchor the market. With upcoming corporate results and key macro data releases in focus, volatility may persist in the near term, though the broader market undertone remains constructive.
Sector focus. We maintain positive on selected power-ancillary and renewable energy counters, supported by consistent demand visibility and long-term energy transition trends. We also favour selective consumer staples, underpinned by resilient domestic consumption and government cash assistance.
FBMKLCI Technical Outlook
Technical Commentary: The FBM KLCI gapped up to extend its upward momentum after breaking above a key resistance level. Indicators remained positive, with the MACD line trading above the signal line while the RSI remained above 50. The next resistance is located at 1,750, while support is envisaged around 1,685.
Company News (source: various)
Capital A Bhd said the distribution of AirAsia X Bhd shares to its shareholders is expected to take place this Friday (Jan 16), paving the way for the company to submit its application for Practice Note 17 (PN17) upliftment.
AirAsia X Bhd has fixed the issue price of its proposed private placement at RM1.65 per share, with the RM1 billion fund-raising exercise fully subscribed by a mix of institutional and private investors.
Sarawak-based oil palm planter Rimbunan Sawit Bhd is disposing of a 1,504-hectare parcel of plantation land in Miri for RM28 million, cash, as it moves to exit the remote estate that has been weighing on its operating efficiency and profitability.
Selangor Dredging Bhd is acquiring a freehold parcel of commercial land in Petaling Jaya for RM63 million to expand its land bank, with the site earmarked for a proposed development carrying an estimated gross development value (GDV) of RM507 million.
Shares of IJM Corp Bhd erased earlier gains to close in the red on Tuesday, as investors reassess the takeover offer by Sunway Bhd.
First listing of the year, Semico Capital Bhd ended its maiden trading day on Bursa Malaysia's ACE Market with a 50% gain on Tuesday.
Digital media group Foodie Media Bhd reported record revenue and profit on Tuesday in its first quarterly results announcement following the group's ACE Market debut in November 2025.
Velocity Capital Partner Bhd has sold off its entire 6.46% stake in MMAG Holdings Bhd for RM9.43 million, citing exposure to further downside risks.
Kumpulan Jetson Bhd is disposing of its entire equity interest in GRP Sdn Bhd, an indirect wholly owned subsidiary, for a total consideration of RM14.8 million, as part of a portfolio rationalisation exercise.
DFCITY Group Bhd a group of shareholders holding more than 10% of its issued share capital have requested the company to convene an extraordinary general meeting (EGM) for the purpose of removing three directors.
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 3.910377 | 3.941921 |
| EUR | 4.603841 | 4.608755 |
| CNY | 0.570110 | 0.570719 |
| HKD | 0.500128 | 0.503660 |
| SGD | 3.077302 | 3.099068 |