Reinforced Backing Expected for Malaysia's Stock Market
The Malaysian stock market, represented by the FBM KLCI, showed positive momentum on Friday, August 18, 2025, recovering from cautious trading earlier in the week. The index gained 8.62 points (0.55%) to close at 1,584.96, supported by buying in heavyweights and improved investor sentiment.
The KLCI added 7.87 points or 0.51% on Friday, finishing at a daily high of 1,556.98. This follows a recent dip where the index fell 4.71 points on August 15 but remained above key support levels.
The broader market is mixed, with a slight edge to declining stocks overall, yet the benchmark index leads upward driven by selected blue-chip gains amid anticipation of corporate earnings and the upcoming Jackson Hole Symposium influencing interest rate expectations.
Among the active stocks in Malaysia, Axiata Group showed strong gains recently, being one of the best performers in July with a 16.9% monthly increase. For CelcomDigi (a merged entity from Celcom and Digi within Axiata Group), the Axiata group’s strong performance implies positive momentum.
AMMB Holdings (AmBank Group) and CIMB Group, as financial sector players, have faced headwinds recently since the financial sector underperformed in July due to market concerns over global trade and tariff issues. However, the latest market uptrend suggests some recovery or stabilization.
No specific trading session data for 99 Speed Mart Retail was found, suggesting limited public market data since it may not be listed as a standalone entity or its direct stock information is not provided in these sources.
The global forecast for the Asian markets is upbeat, with technology and financial shares expected to lead the way higher. The tech sector on Wall Street was led higher by Apple (AAPL) after announcing plans to spend about $600 billion in the U.S. over the next four years.
The European markets were mixed, and the U.S. bourses were up, and the Asian markets are also expected to tick higher on Monday. Uncertainty prevails over the U.S.-Russia conflict over the war with Ukraine, combined with the threat of sanctions on Russian oil exports.
The Dow Jones Industrial Average (Dow) climbed 206.97 points or 0.47%, finishing at 44,175.61. The S&P 500 Index gained 49.45 points or 0.78%, ending at 6,389.45. The NASDAQ Composite Index jumped 207.32 points or 0.98%, closing at a record 21,450.02. Significant strength also emerged among banking, oil service, brokerage, and networking stocks.
The macro backdrop for Malaysia remains cautiously optimistic. After a slow start to the year with Q1 GDP growth at 4.4% easing from 4.9% in Q4 2024, the economy retains resilience supported by strong domestic demand, low unemployment, and fiscal measures, though external risks from US trade policy and geopolitical tensions persist. The central bank is expected to maintain an accommodative monetary policy with the Overnight Policy Rate steady at 3.0% for 2025 to support growth.
In summary, the Malaysian stock market is currently in a mild uptrend with selective sector and company gains, notably in telecom (Axiata) while financials face some pressure. Market outlook is mixed but cautiously positive, driven by domestic demand and steady economic fundamentals amid global uncertainties.
Investors in the Malaysian stock market may consider focusing on the performance of Axiata Group, which has shown strong gains recently and is expected to continue its positive momentum. However, financial sector players like AMMB Holdings and CIMB Group might face headwinds due to recent underperformance in the financial sector, but the latest market uptrend suggests some recovery or stabilization. Overall, the anticipation of corporate earnings and the upcoming Jackson Hole Symposium, combined with the global forecast for Asian markets being upbeat, could influence investing in the stock-market, particularly in technology and financial shares.
