FBM KLCI Hits Seven-Year High of 1,744 on Strong Blue-Chip Buying and Foreign Inflows

Malaysia’s benchmark FBM KLCI extended its rally on Monday, climbing 1.40% to close at a fresh seven-year high of 1,744.07, fuelled by robust buying in blue-chip stocks from local institutions and foreign investors. Finance (+1.89%) and Consumer (+1.62%) sectors led gains, while Technology (-1.78%) and Utilities (-0.86%) lagged. Globally, Wall Street closed higher with the Dow up 0.64%, supported by a softer dollar and gold surpassing USD5,000/oz ahead of the Fed’s January 29 decision. Asian markets were mixed, with Japan’s Nikkei falling 1.79% on yen strength and China edging lower amid regulatory cooling measures.

FBM KLCI Hits Seven-Year High

Looking ahead, the FBM KLCI is expected to maintain a mildly positive bias, bolstered by sustained foreign inflows and a firmer ringgit. Key focus remains on the US Federal Reserve’s rate guidance and upcoming Big Tech earnings from Microsoft, Meta, Tesla, and Apple. Domestic defensives, especially consumer staples and utilities, are favoured due to ringgit strength and policy support. Technically, the index broke above 1,725 resistance with bullish momentum; next resistance lies at 1,750 and support at 1,685.

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