Local Market Under Pressure Despite Strong GDP Growth

KUALA LUMPUR: The FBM KLCI extended its decline on Friday, shedding 0.98% to close at 1,607.76, as cautious investor sentiment overshadowed stronger-than-expected economic growth figures.

Malaysia’s economy expanded by 5.3% in the third quarter of 2026, exceeding market expectations and reinforcing the country’s growth trajectory. However, concerns over foreign fund outflows and mounting global uncertainties continued to weigh on market sentiment.

Despite the benchmark index closing lower, overall market breadth improved, with 597 gainers surpassing 470 decliners, while 517 counters ended unchanged. The positive breadth suggested selective buying interest, particularly in defensive and technology-related sectors.

Technology stocks emerged among the strongest performers, rising 1.59%, supported by bargain hunting following recent market weakness. Telecommunications and Media gained 1.54%, while the REIT sector advanced 1.36% as investors sought relatively stable income-generating assets.

Local Market Pressure

On the downside, Plantation stocks fell 2.39%, making them the worst-performing sector of the day. Industrial Products and Services declined 2.33%, while Construction eased 0.64%.

Market analysts expect the FBM KLCI to remain range-bound in the near term as investors monitor global developments, including elevated oil prices, geopolitical tensions and the upcoming US Federal Reserve policy decision.

Attention is also expected to remain on sectors linked to data centre development and rising energy demand. Construction and utility counters may continue to attract interest amid ongoing investment flows into Malaysia’s digital infrastructure ecosystem.

Technically, the FBM KLCI remains under pressure, with key support levels identified at 1,600 and 1,580, while resistance is seen between 1,630 and 1,640.

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