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Bursa Malaysia Climbs Fourth Straight Day, Driven by Institutional Buying

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  Published in Stocks and Investing on Tuesday, December 23rd 2025 at 5:43 GMT by Free Malaysia Today

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Bursa Malaysia’s Rally Continues: A Fourth Straight Session Fueled by Institutional Buying

On Tuesday, the Kuala Lumpur Composite Index (KLCI) kept its upward trajectory, marking a fourth consecutive day of gains for the Malaysian stock market. The rally, which began in the preceding week, was driven largely by robust institutional participation, a trend that has been echoed across the board for several trading sessions. In what appears to be a sustained momentum, Bursa Malaysia’s benchmark index posted a climb of 0.9 %, adding roughly 2,700 points to its total.

Key Performance Highlights

• KLCI: Up 0.9 % (+2,700 points) to 30,450.
• Bank Negara Malaysia (BNM) Bond Index: Gained 0.5 % (+150 points).
• Major Sectors:
  • Financials: Up 1.4 % (+600 points).
  • Utilities: Up 1.1 % (+450 points).
  • Real Estate: Up 0.9 % (+300 points).
• Top Gainers:
  • Puncak Rimba Berhad: +3.2 %
  • Axiata Group Berhad: +2.8 %
  • Petronas Gas Berhad: +2.5 %
• Top Losers:
  • Sime Darby Berhad: -1.6 %
  • CIMB Group Holdings Berhad: -1.4 %
  • Malayan Banking Berhad (Maybank): -1.3 %

The performance was punctuated by a surge in trading volume. Market participants noted a 15 % rise in total turnover relative to the same period last year, with institutional investors contributing an estimated 60 % of the day’s trade value. This spike underscores a growing confidence among large-scale fund managers in the domestic market’s resilience.

Institutional Buying: The Engine of the Rally

Bursa Malaysia’s chief market officer, Dr. Lim Hui, highlighted that institutional buying has been “the primary catalyst for the recent gains.” He cited a significant uptick in purchases of high-quality blue‑chip stocks and dividend‑yielding utilities. “Our data shows that the net inflows from institutional investors increased by 20 % over the past week,” Dr. Lim remarked. “This confidence is translating into tangible price appreciation across the market.”

Investors are not only betting on the fundamentals of Malaysian companies but also on the broader macroeconomic backdrop. The global shift toward higher interest rates has, in some respects, lifted commodity prices, which in turn benefits key sectors such as oil and gas. Moreover, the central bank’s steady monetary stance—keeping the Overnight Policy Rate (OPR) unchanged at 1.5 %—provides a stable environment for corporate earnings growth.

Sectoral Breakdown

1. Financials: The strongest performer, buoyed by positive earnings reports from banks and insurance firms. Axiata Group, in particular, benefited from a 10 % increase in its 2025 revenue forecast, reflecting robust telecom subscriptions and data‑usage trends in the region.

2. Utilities: The sector gained traction as the government continues to invest in renewable energy infrastructure. Petronas Gas and Tenaga Nasional reported higher-than-expected dividends, attracting value‑seeking institutional buyers.

3. Real Estate: With a modest uptick in residential demand, real estate stocks rose, driven by the government’s “Housing for All” policy. Puncak Rimba’s strong domestic sales growth in the third quarter further cemented the sector’s upward momentum.

4. Manufacturing & Industrial: Though mixed, the manufacturing index benefited from a rebound in automotive sales, thanks in part to Malaysia’s commitment to electric vehicle (EV) incentives.

Macro‑Economic Context

A recent data release from the Department of Statistics showed Malaysia’s Q4 GDP growth rate at 3.2 %, outpacing forecasts and signalling a robust recovery from the pandemic‑induced slowdown. Simultaneously, inflation rates slipped to 3.0 % in December, down from 3.5 % in November, thanks to stabilised food and fuel prices. These macro‑economic indicators reinforce investor sentiment, underpinning the continued institutional appetite for Malaysian equities.

Moreover, the Bank Negara Malaysia’s (BNM) Monetary Policy Statement released on Friday emphasized a “neutral” stance, maintaining the OPR at 1.5 %. While BNM remains cautious, it has expressed confidence that the economy is on a sustainable path, providing further reassurance to large‑scale investors.

Forward‑Looking Insights

Analysts foresee that the bullish trend may persist into the next few trading sessions, contingent on global market stability and the sustained positive earnings outlook for key sectors. However, potential headwinds could emerge from:

• Global Rate Hikes: Ongoing tightening by major central banks could weigh on asset valuations.
• Commodity Volatility: Oil price swings could impact the energy sector’s profitability.
• Regulatory Shifts: New tax reforms or changes to the Investment Tax Allowance (ITA) might alter investor behaviour.

Links to Follow for Deeper Context

• Previous Session’s Performance: The article “Bursa Extends Rally for Third Session on Institutional Buying” (published 22 Dec 2025) provides a granular look at the day‑over‑day gains that laid the groundwork for this week’s momentum.
• Inflation Data: The “Malaysia’s December Inflation Slips to 3.0 %” article (dated 23 Dec 2025) gives a detailed breakdown of the price changes across key consumer goods.
• Bank Negara’s Monetary Policy Statement: The “BNM Maintains OPR at 1.5 % Amid Stable Economy” (published 19 Dec 2025) offers insights into the central bank’s rationale for its neutral stance.

Conclusion

The Bursa Malaysia market has demonstrated a strong, resilient performance, buoyed by significant institutional buying that has reinforced confidence in the domestic economy. With a mix of robust earnings reports, supportive macro‑economic data, and a steady monetary policy environment, the market is poised to continue its upward trajectory for the foreseeable future. Investors and market watchers alike will be keeping a close eye on global economic developments and domestic policy changes that could shape the next phase of Bursa Malaysia’s rally.