KUALA LUMPUR (April 18): Malaysian stocks rose on Friday and racked up the biggest weekly gain in more than two years amid broad optimism in Asia about easing international trade tensions.
The FBM KLCI advanced 16.13 points or 1.1% to 1,499.40 points, with 27 out of 30 component stocks closing in positive territory. On a weekly basis, the benchmark index logged its biggest gain since the October 21 week in 2022.
“A key catalyst for this upswing was Chinese President Xi Jinping’s high-profile visit to Asian countries. These events fuelled optimism across Asian markets which all the indices closed on a positive note,” UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said.
Regional markets also advanced during the week, lending support to Bursa Malaysia as risk appetite returned across Asia.
The local exchange saw 544 gainers against 257 decliners on Friday, with a trading volume of 1.69 billion shares worth RM1.25 billion.
Gains among sector indices were led by energy (1.61%), financial services (1.42%), technology (1.37%), construction (1.36%) and plantation (1.17%).
Top gainers among KLCI constituents included Petronas Gas Bhd (KL:PETGAS), which rose 2.8% to close at RM16.90; 99 Speed Mart Retail Holdings Bhd (KL:99SMART), up 2.75% to settle at RM2.24; and IOI Corp Bhd (KL:IOICORP), which gained 1.95% to RM3.66 at closed.
KLCI to extend recovery, but tariff talks may stir volatility
Blue-chip consumer names with strong earnings visibility remain favoured, though UOB cautioned that selective stock-picking is still necessary amid valuation gaps.
“Looking ahead, we maintain a constructive outlook for the FBM KLCI, which appears well-positioned to extend its recovery within a projected trading range of 1,515-1,520 next week,” Mohd Sedek said.
He also noted opportunities in consumer and financial stocks, given their solid dividend yields.
Nonetheless, external developments could inject near-term volatility, the analyst cautioned ahead of the Malaysian government’s delegation’s trip to Washington next week to discuss tariff issues.
“A well-defined framework to address legacy Trump-era tariffs could further uplift sentiment, particularly for export-oriented counters.
"However, any policy ambiguity may spark short-term volatility, necessitating a defensive bias towards large-cap defensives,” he noted.
Meanwhile, global concerns over a recession have eased, as evidenced by the pullback in gold prices from recent highs, signalling a shift in investor appetite towards risk assets, according to the analyst.
Still, foreign participation in Malaysian equities remains tepid, with net buying recorded on only four trading days in 2025 up to April 17, Mohd Sedek added.