FBM KLCI Ends 2025 Weakly Amid Muted Sentiment; Positive Outlook for 2026

The FBM KLCI closed 2025 on a subdued note, dipping 0.3% to 1,680.1 on Wednesday’s final trading day amid absent fresh catalysts and negative market breadth (533 decliners vs 465 advancers). Technology (-1.0%), Construction (-0.6%), and Utilities (-0.4%) dragged the index, offset slightly by gains in Property (+0.7%) and Transportation & Logistics (+0.3%).

Positive Outlook

Globally, Wall Street extended post-Christmas losses with the Dow (-0.6%), S&P 500 (-0.7%), and Nasdaq (-0.8%) declining on profit-taking. Europe’s STOXX 600 eased 0.1%, while Asia saw mixed results with Hang Seng down 0.9% and Shanghai Composite up 0.1%.

Looking ahead to 2026, analysts expect initial profit-taking but remain optimistic on the local bourse, backed by improving domestic economy, anticipated Fed rate cuts (markets pricing 50-bp easing), resilient AI-driven tech, consumer/tourism plays, and renewable energy themes. Volatility is likely amid data-dependent Fed policy.