Bursa Malaysia’s KLCI climbed 1.2% to 1,637 on Thursday afternoon, erasing earlier losses and reaching a three-week high. Sentiment improved following overnight gains on Wall Street, as investors evaluated the implications of sweeping Democratic victories in the U.S. midterm elections for the Iran conflict, President Trump’s policy agenda, and the ongoing AI-driven trade.
On the domestic front, Bank Negara Malaysia (BNM) kept the overnight policy rate unchanged at 2.75% for the eighth consecutive month, in line with market expectations. Meanwhile, manufacturing activity recorded its fastest expansion in six months in the latest reading, supported by stronger output and an uptick in new orders.
Upside momentum was tempered, however, by signs of moderating economic growth, with Q3 GDP easing to a one-year low of 5.3%. Financials and consumer-related counters led the advance, more than offsetting weakness in energy minerals, healthcare, technology, and manufacturing shares.
Major banks posted solid gains, including Malayan Banking (up 3.0%), Public Bank (up 4.2%), and Hong Leong Bank (up 4.9%). Other notable risers included KPJ Healthcare (up 3.8%) and Nestle (up 2.4%).
