FX.co ★ Malaysia Stocks Hit Over 7-Year High

On Tuesday morning, the FBM KLCI increased by 13 points, marking a 0.7% rise to reach 1,757. This marks the fifth consecutive session of gains, reaching its highest level since October 2018. The uptick was bolstered by strong buying activities in blue-chip stocks, aided by a stronger ringgit. The positive market sentiment was also driven by robust domestic economic data and solid policy fundamentals. Preliminary data indicated that Malaysia's GDP expanded by 5.7% year-on-year in the fourth quarter of 2025, up from a 5.2% growth in the third quarter, and showcasing the most substantial growth since the second quarter of 2024. Meanwhile, the central bank kept its key interest rate steady at 2.75% last week, with expectations for headline inflation to remain moderate through 2026. Traders are, however, closely monitoring the upcoming Federal Reserve's monetary policy decision and the release of China's PMI data later this week. The index saw considerable contributions from the financial services sector, followed by industrial products and services, and utilities. Noteworthy increases were observed in Public Bank Bhd (1.6%), Hong Leong Financial Group (1.2%), Hong Leong Bank (1.1%), Maybank (0.9%), and CIMB Holdings (0.8%).