Bursa Malaysia’s KLCI extended its advance on Friday afternoon, trading near 1,729 and approaching a two-month high. Market sentiment was supported by upbeat Q2 GDP flash estimates, with resilient services activity and robust electronics exports helping to counteract headwinds from ongoing Middle East tensions. For the first half of the year, Malaysia’s economy expanded 5.6% year-on-year, quickening from 4.5% in the same period of 2025. Inflation also eased slightly in June to 1.9% from 2.0% in May, as fuel subsidies helped cushion the impact of higher crude oil prices.
Financials led the advance, underpinned by gains in Malayan Banking (up 1.6%), Hong Leong Bank (up 1.5%), and CIMB Group (up 1.2%). Energy, communications, and defensive counters also contributed to the upside, with Petronas Chemicals rising 2.8%, Telekom Malaysia adding 0.9%, and Carlsberg Brewery climbing 0.8%. With the benchmark up 2.1% so far this week, the market is poised for a third straight weekly gain, reinforcing a picture of steady momentum amid improving macroeconomic signals.
