KUALA LUMPUR (Jan 13): The FBM KLCI rose to its highest level in more than seven years on Tuesday, breaking the 1,700 mark on the back of buying interest in heavyweight stocks.
The benchmark index gained 5.3 points, or 0.3%, to open at 1,700.74 — its highest since November 2018, when it reached 1,701.99. It later closed at its intraday high of 1,708.20, up 0.75%.
Seventeen of the 30 index constituents were in the green, with Tenaga Nasional Bhd (KL:TENAGA) leading the gainers, rising 20 sen to RM13.80.
Elsewhere in Asia, markets also advanced on Tuesday, with Indonesia’s Jakarta Composite Index climbing 0.74%, Singapore’s Straits Times Index rising 0.85%, Taiwan’s TAIEX gaining 0.46%, Hong Kong’s Hang Seng Index up 0.9%, and South Korea’s Kospi adding 1.47%.
Rakuten Trade in a note attributed the KLCI’s strong performance to intermittent net foreign buying, although it expects foreign fund outflows to persist.
“Reports of Sunway Bhd (KL:SUNWAY) taking over IJM Corporation Bhd (KL:IJM) are also positive for the construction sector, as this could kick-start more mergers and acquisitions going forward,” the brokerage said in a note on Tuesday.
Meanwhile, Maybank Investment Bank, citing an improved market outlook, has set its end-2026 KLCI target at 1,730.
“From a bottom-up perspective, the KLCI could reach 1,780, driven by large-cap banks, Tenaga Nasional and Gamuda Bhd (KL:GAMUDA),” the research house said in a strategy note. Bloomberg data showed the 12-month aggregated target for the index at 1,828.09 points.
The KLCI has been on an uptrend since Jan 8, just days after Prime Minister Datuk Seri Anwar Ibrahim’s New Year 2026 message outlined a reform-led, pro-growth agenda focused on governance, execution and near-term economic support.
By sector, technology, property and construction stocks were the top gainers last week, while utilities, transportation and industrial counters lagged.
Despite the overall positive market sentiment, concerns persist over heightened geopolitical risks, particularly developments in Venezuela, US President Donald Trump’s renewed rhetoric on annexing Greenland, and unrest in Iran.
Nevertheless, MBSB Research said in a note these geopolitical developments have so far had a limited impact on Malaysia’s economy and corporate earnings, and therefore only have a marginal effect on the local equity market.
The research house maintained its 2026 KLCI target at 1,750 and expects the Malaysian stock market to remain broadly sanguine, supported by resilient economic conditions, positive corporate earnings, potential interest rate cuts by major central banks, and the prospect of renewed foreign fund inflows.