FX.co ★ Malaysia Stocks Rise to Over 7-Year High

On Monday, the FBM KLCI advanced by 12 points, or 0.7%, reaching 1,732 during early trading sessions. This marked the fourth consecutive session of gains and the index's highest level since mid-October 2018. The positive movement was largely supported by robust domestic data. Preliminary figures indicated that Malaysia’s economy grew by 5.7% year-on-year in the fourth quarter of 2025, up from a 5.2% growth rate in the third quarter, and representing the most substantial growth since the second quarter of 2024. Last week, the central bank maintained its key interest rate at 2.75%, anticipating that headline inflation will remain moderate into 2026. Traders are, however, closely monitoring the Federal Reserve’s upcoming monetary policy decision and the release of China’s PMI later this week. Financial services continued to buoy the index, with significant gains reported in Hong Leong Financial Group (up 1.9%), CIMB Group Holdings (up 1.3%), Hong Leong Bank (up 1.3%), and Maybank (up 0.9%). Other sectors experienced increases as well, notably construction, where IJM Corporation saw a 2.7% rise following news that the Employees Provident Fund raised its stake in the construction firm to over 20%.