Abstract：Bursa Malaysia extended its rally to a fresh seven-year high, supported by stronger global earnings, continued buying in banking stocks and sustained foreign fund inflows, although analysts caution that near-term volatility may persist amid limited domestic catalysts.
Bursa Malaysia extended its rally as improved investor sentiment continued to support buying interest, following better-than-expected earnings from Taiwan Semiconductor Manufacturing Co. and several major US banks. The positive results helped lift confidence in global equities, spilling over into regional markets, including Malaysia.
The FBM KLCI, which has gained about 3% since the rally began last Friday, remained firm as traders continued to accumulate shares, particularly in heavyweight banking stocks. At the opening bell, the benchmark index added 2.47 points to 1,717.63, marking its highest level in seven years.
Banking counters led the advance, with Maybank rising six sen to RM11.16, RHB Bank gaining four sen to RM8.22 and AMMB climbing three sen to RM6.58. In the consumer sector, Nestlé also stood out, jumping RM1.50 to RM117.50.
The market‘s upbeat tone comes ahead of the release of Malaysia’s advance estimate for economic growth in the fourth quarter of 2025, which is due later today. Investors are watching the data closely for signs of sustained economic momentum.
Despite the positive run, analysts remain cautious. TA Securities noted that trading could turn more guarded in the absence of strong domestic catalysts, especially given ongoing geopolitical uncertainties. Rakuten Trade also pointed out that the market may see a mild correction at current levels before resuming its upward trend.
Rakuten added that foreign investors appear to be maintaining their buying interest, citing net foreign inflows recorded over the past few trading sessions, which have helped underpin the markets recent strength.
In active trading, precision engineering components manufacturer Northeast Group topped the list as bargain hunters moved in after a sharp pullback earlier in the week. The stock rebounded by four sen to 63.5 sen, with 19.27 million shares changing hands. Other actively traded counters included Velesto, which edged up half a sen to 28 sen, and NexG, which slipped two sen to 29.5 sen.
