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KLCI Ends Five-Day Rally
Mon, 19-Jan-2026 07:57 am
by Research Team • Apex Research

Malaysia Market Review: The FBM KLCI ended its five-day rally to close 0.14% lower, dragged by profit-taking in selected heavyweights. Market breadth was negative, with 561 decliners outpacing 486 advancers, although lower liners bucked the broader trend to end in positive territory. Sector-wise, Technology (+0.89%), REIT (+0.58%) and Telecommunications & Media (+0.54%) outperformed, while Plantation (-0.97%) and Energy (-0.30%) were the main laggards.

 

Global Markets. US equities were little changed on Friday, with the Dow (-0.17%), S&P 500 
(-0.06%) and Nasdaq (-0.06%) closing near the flatline. Within the technology space, TSMC (+2.96%) and AMD (+1.72%) outperformed, supported by optimism surrounding a US–Taiwan trade agreement that could channel up to USD250bn into domestic semiconductor and technology manufacturing. In Europe, the STOXX 600 and FTSE 100 eased 0.03% and 0.04% respectively, as sentiment was weighed by lingering geopolitical uncertainty over US-Europe tensions surrounding Greenland. Asian markets were mixed, as the Nikkei 225 (-0.32%) and Hang Seng Index (-0.29%) edged lower, while Thailand’s SET Index (+1.13%) outperformed.

 

Market Outlook. We expect the FBM KLCI to trade positively today, underpinned by a stronger-than-expected GDP print of +5.7% in 4Q25. However, local sentiment may remain tempered after President Trump signalled fresh hesitation over appointing Kevin Hassett as the next Federal Reserve chair, reviving speculation that monetary policy may be less dovish than markets had anticipated once Jerome Powell steps down in May. Continued foreign inflows and the ongoing rotation into Asia should provide support for large-cap defensives and earnings-visible names, particularly financials, utilities and selected technology counters.

 

Sector focus. We favour domestic-oriented and defensive sectors such as consumer, power-related and renewable energy plays, which offer more resilient earnings backed by government initiatives supporting the clean energy transition and rising data centre development.

 

Technical Commentary: The FBM KLCI ended lower, trimming its gains after the recent rally. 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)

Binastra Corporation Bhd has secured its largest contract, winning RM1.2 billion in awards for building and infrastructure works at Exsim’s Causewayz Square in Johor Bahru.

 

Vestland Bhd has secured two construction contracts worth RM602 million.

 

Genting Plantations Bhd said its 95%-owned Indonesian unit, PT Susantri Permai, has been fined 396 billion rupiah (RM96.6 million) by Indonesia’s Forest Area Enforcement Task Force for alleged non-compliance in forest-designated zones.

 

YTL Cement Bhd, which owns 65.4% of Malayan Cement Bhd, is raising up to RM755 million via a secondary placement of up to 100 million shares, or 7.2% of the group.

 

MN Holdings Bhd has secured four contracts worth RM122.7 million to supply and install substation equipment for data centre projects in Peninsular Malaysia.

 

Allianz Malaysia Bhd has declared a single-tier interim dividend of 89.5 sen per share for FY2025, with ex-date on Jan 30 and payment on Feb 13.

 

Capital A Bhd has completed the disposal of its aviation business to AirAsia X Bhd, issuing 2.31 billion new AAX shares and transferring RM3.8 billion debt as part of its PN17 exit plan.

 

Pimpinan Ehsan Bhd has secured a final extension to submit its regularisation plan.

Sentiment: Negative
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