Malaysia’s benchmark FBM KLCI registered a strong 12.58% gain in 2024 — marking its best performance in 14 years — as the country saw a sharp recovery in investor sentiment after a prolonged period of political uncertainties, lifted by strong investment activity and trade activities.

2025 outlook: The key sectors to watch

Malaysia’s stock market will have little upside ahead following strong run-up even as economic growth remains intact, HSBC flagged on Thursday.

Valuations are not as appealing, especially when compared to elsewhere in Asean, HSBC said in a note.

Malaysia stocks have little upside ahead after recent rally, says HSBC

Analysts have revised their earnings forecasts for Malaysian stocks and trimmed the year-end target for the benchmark FBM KLCI following mixed results across sectors in the July-September quarter (3Q2024).

In a note, UOB Kay Hian has trimmed earnings forecasts for the FBM KLCI by 0.8% for 2024 and 1.7% for 2025, driven by downgrades in the plantation and consumer sectors and weakness in the oil and gas shipping segment.

Analysts revise KLCI growth forecast after mixed 3Q, cut year-end target

CGS International views the recent lacklustre market performance as an excellent buying opportunity, as it sees potential price-earnings (P/E) expansion going into 2025.

CGS sees market dip as prime buying opportunity, predicts P/E growth by 2025

Donald Trump's recent US election win will affect Malaysian exporters, but is largely neutral for domestic growth, the ringgit, and the equity market, said CGS International.

Trump presidency largely neutral for Malaysia, while market consolidation offers buying opportunities — CGS

Increased market volatility is expected in the near term due to the US presidential election, but the Federal Reserve's (Fed) decision following the Federal Open Market Committee meeting this Wednesday and Thursday is likely to have a more significant impact, said MIDF Research.

Market volatility looms with US election, but Fed decision's impact more significant — MIDF

Maybank Investment Bank has warned Asean investors of potential economic turbulence and a surge in trade tensions, amid anticipation of more import tariff hikes if Donald Trump wins a second term as the US president.

Maybank IB tells clients to go defensive, warns of potential economic risks brought by new US president

(Oct 31): Amazon's push to offer more everyday essentials like toothpaste is hurting its average selling prices (ASPs), but it is also a guard against rivals such as Temu and Shein, who offer rock bottom prices on goods they ship from China.

Amazon’s plan to tackle Temu, Shein? Sell more toothpaste

The final quarter of 2024 (4Q2024) will likely be volatile for Malaysia’s stock market, pushing investors to protect gains made while identifying opportunities for next year, said RHB Investment Bank.

Protect gains as Bursa may be volatile in 4Q, RHB advises

Kenanga Research named a few commodity and consumer stocks as potential "outflow hedge" amid capital outflows from regional equity markets, including Malaysia, in response to Chinese stimulus measures.

The research firm noted that since the Chinese stimulus measure was announced, Asean equity markets saw broad-based outflows in early October, especially in Malaysia which was unsurprising on strong performance of 20% year to date gain in the FBM KLCI in dollar terms.

Kenanga names commodity, consumer stocks as 'hedge' against outflow amid China economic stimulus

HSBC has upgraded Malaysian stocks to ‘neutral’ from an ‘underweight’ call, betting on stronger corporate earnings and better liquidity while the economy benefits from strong foreign investment.

HSBC lifts Malaysian stocks to 'neutral' from 'underweight'

Nomura Global Markets Research has upgraded Malaysian stocks to 'overweight' from 'neutral', as part of its equity strategy call that an imminent US rate cut will stoke a rally in emerging markets.

Time to add Malaysian stocks as Fed cuts rates, says Nomura

Investors are advised to prioritise productive assets over speculative ones, amid limited availability of shariah-compliant hedging instruments, according to Bursa Malaysia.

Investors should focus on productive assets amid limited shariah-compliant hedging — Bursa

Rakuten Trade Sdn Bhd raised its year-end target for the benchmark FBM KLCI to 1,730 points (from 1,660 previously), driven by an influx of foreign direct investment (FDI) in data centres, improved corporate earnings and domestic liquidity.

Rakuten Trade raises year-end KLCI target to 1,730, overweight on banking, construction, tech, telco, power and utilities

Malaysia's automotive sector total industry volume is expected to normalise to a three-year low of 780,000 units this year, according to the Malaysian Automotive Association’s (MAA) projection, having hit a record 816,747 units in 2024.

MAA sees 2025 vehicle sales at three-year low after 2024 TIV hits new record

GAMUDA Land, the property arm of Gamuda Bhd (KL:GAMUDA), is aggressively expanding its footprint in Vietnam, acquiring its eighth project there, this time in the Le Chan district of Hai Phong City, Vietnam’s third largest, just 1½ hours from Hanoi.

The 2.7-acre land, worth RM175.4 milli...

Gamuda Land’s 8th project in Vietnam leverages two-decade experience and strong property demand

Bitcoin held a retreat from a record as traders awaited crypto policy directives from US President Donald Trump following his inauguration.

Crypto market in limbo as Trump omits sector from day one orders

Datuk Seri Najib Razak does not appear to see anything wrong with getting updates on the then-ongoing investigations into 1Malaysia Development Bhd (1MDB) scandal.

Najib sees nothing wrong with getting updates on investigations involving him

The government is reviewing a more targeted approach to assist the public, replacing the method of providing toll-free travel during festive seasons, said Works Minister Datuk Seri Alexander Nanta Linggi.

No more toll-free travel during festive seasons — minister

Datasonic Group Bhd's (KL:DSONIC) one-year extensions for passport supply and biodata page contracts have come within expectations, but the company's share price has been weighed down by the absence of long-term contract extensions.

Contract renewals boost Datasonic's prospects, say analysts

Real estate investment trusts

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Brokers Digest: Local Equities - Real estate investment trusts, Keyfield International Bhd, Tenaga Nasional Bhd, Kerjaya Prospek Group Bhd

Panamanian authorities began an audit of the China-linked company that controls two ports adjacent to the Panama canal, as US President Donald Trump repeats threats to take over the waterway.

Panama opens audit of Li Ka-shing-linked Chinese port operator, as Trump threatens to take canal back

PUTRAJAYA (Jan 21): Implementing job rotations for service-counter civil servants is expected to strengthen integrity, enhance efficiency, and cultivate a more conducive work environment.

Civil servants service-counter job rotations to enhance integrity, cultivate conducive environment — home minister

Oil and gas pipes supplier Saliran Group Bhd has entered into an underwriting agreement with Malacca Securities, in conjunction with its initial public offering (IPO) on the ACE Market of Bursa Malaysia.

Saliran Group inks underwriting agreement with Malacca Securities for ACE Market IPO

Malaysian Resources Corp Bhd (KL:MRCB) is said to have won the bid for the Ipoh Railway Station Integrated Development Plan (iRide) project, which will be inked on Thursday (Jan 23) in Ipoh, Perak, according to sources.

MRCB wins bid for Ipoh Sentral, say sources 

President Donald Trump did not immediately impose tariffs on Monday as previously promised but directed federal agencies to "investigate and remedy" persistent US trade deficits and unfair trade practices and currency manipulation by other countries.

Trump holds off on immediate tariffs but plans trade overhaul

RichTech Digital Bhd, which distributes electronic reloads and provides bill payment services, has launched the prospectus for its ACE Market initial public offering (IPO) to raise up to RM20 million.

RichTech launches ACE Market IPO prospectus, seeks to raise up to RM20m

The dollar fell as Donald Trump was sworn in as US president, with traders betting that he’d hold off on implementing aggressive tariffs immediately after his Inauguration.

US dollar tumbles on bets Trump holds off on immediate tariffs

President Donald Trump wasted no time announcing steps to implement many of his campaign pledges, including on immigration, energy, the military and federal workforce, casting many as reversing the policies of his predecessor, Joe Biden.

A rundown of Trump’s executive actions, from tariffs to immigration

(Jan&nbsp;21): Yinson Production Offshore Pte Ltd plans to allocate US$4.5 billion to US$6 billion (RM20.2 billion to RM30 billion) capital expenditure in the next three years to expand ahead of a possible initial public offering in the US.

Yinson's FPSO unit to allocate up to US$6 bil in capex

Datuk Seri Najib Razak claimed that the legality of the government task force investigating the multi-billion-dollar 1Malaysia Development Bhd (1MDB) debacle was questionable.

Najib claims 1MDB govt task force disbanded due to unlawfulness

KUALA LUMPUR (Jan 21): Aluminium smelting and extrusion facility, Press Metal Aluminium Holdings Bhd’s (KL:PMETAL) fourth quarterly earnings are expected to come in a range of RM375 million to RM400 million, according to Hong Leong Investment Bank (HLIB).

Press Metal’s 4Q earnings to be boosted by associate PT Bintan’s contribution amid high alumina prices, says HLIB

Wall Street breathed a collective sigh a relief after Donald Trump held off from imposing China-specific tariffs on his first day in office, pushing US equity futures higher. The dollar slumped.

Tariff relief lifts S&P futures as Trump sworn in

Global markets greeted Donald Trump's presidency with apprehension on Tuesday in moves that were highly sensitive to headlines over the newly sworn-in president's plans for trade relations and tariffs in particular.

Shares jittery, dollar jumps with Trump's plans for tariffs

President Donald Trump on Monday laid out a sweeping plan to maximise oil and gas production, including by declaring a national energy emergency to speed permitting, rolling back environmental protections, and withdrawing the US from an international pact to fight climate change.

Trump says to unleash American fossil fuels, halt climate cooperation

President Donald Trump signed an executive order on Monday to create an advisory group called the Department of Government Efficiency aimed at carrying out dramatic cuts to the US government, attracting immediate lawsuits challenging its operations.

Trump announces 'DOGE' advisory group, attracting instant lawsuits

Malaysia’s National Water Services Commission (SPAN) on Monday raised concerns over the extensive, unsustainable use of potable water by data centres in the country.

SPAN calls out data centres for unsustainable use of potable water 

President Donald Trump launched his second term with a strident inaugural address that vowed to prioritise America’s interests with a “golden age” for the country, while taking on “a radical and corrupt establishment.”

Trump inaugural speech vows ‘golden age’ to undo US decline

A tariff war with the US will cut into economic growth of a trading bloc of Southeast Asian nations, China, Japan and South Korea, according to a regional macroeconomic surveillance organisation.

Retaliatory tariffs against US could shave Asean+3 growth by up to 2%, AMRO warns

Payment under Phase 1 of Sumbangan Tunai Rahmah&nbsp;or Rahmah Cash Donation (STR) will be disbursed in stages from Wednesday, according to the Ministry of Finance (MOF).

Sumbangan Tunai Rahmah's Phase 1 payment starts on Wednesday

President Donald Trump temporarily halted a ban on TikTok in the US, granting the company and its Chinese parent ByteDance Ltd more time to reach a deal for the popular app that would resolve long-standing US national security concerns.

Trump halts TikTok ban, giving app extra time to find buyer

KUALA LUMPUR (Jan 21): Former prime minister Tun Dr Mahathir Mohamad has filed an appeal notice with the High Court, challenging the court’s decision on Jan 13 that dismissed his judicial review application regarding his or his lawyer’s presence at the Pulau Batu Puteh Royal Commission of Inquiry (RCI).

Mahathir appeals High Court’s rejection of his, lawyer’s presence at Pulau Batu Puteh RCI

Malaysia's exports are expected to continue growing in the coming months as external demand picks up ahead of potential US tariffs that will disrupt global trade, economists said.

Malaysia’s external trade may pick up as exporters, importers stay ahead of Trump tariffs — economists 

President Donald Trump signed an executive order directing the US to withdraw from the World Health Organization, a decision that would cut off one of the international aid and disease response group’s largest funding sources.

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