FBM KLCI rebounds on US growth upgrade

KUALA LUMPUR, 24 AUGUST 2026 —

KUALA LUMPUR – The FBM KLCI recovered a portion of its prior‑day decline on Friday, 30 August, after the U.S.

The rally was driven largely by positive sentiment in the banking and utilities sectors, while technology stocks faced headwinds following Nvidia’s share price decline.

Background and U.S. Economic Forecast The U.S. Bureau of Economic Analysis (BEA) released its second estimate of the fourth‑quarter gross domestic product (GDP) on Thursday, showing an annualised growth rate of 3.0%, up from the 2.8% figure reported in the preliminary estimate. The revision was welcomed by global markets, as it suggested that the U.S. economy was still expanding at a pace despite concerns about inflation and monetary policy tightening.

The stronger GDP reading also lifted the Dow Jones Industrial Average to a new all‑time high, reinforcing a positive risk‑on sentiment that spilled over into Asian equity markets.

Current Development Detail Investors are now awaiting the core Personal Consumption Expenditures (PCE) report, scheduled for release at 10:00 p.m. local time on Friday. The PCE is the Federal Reserve’s preferred inflation gauge, and its reading will be closely watched for clues about the trajectory of U.S. monetary policy. In the meantime, the Malaysian market has been influenced by a mix of domestic and international factors.

Malacca Securities Research noted that the decline in Nvidia’s share price overnight could weigh on the broader technology sector, especially given the stronger ringgit environment. The research also highlighted that several property, construction, and selected oil and gas stocks had shown growth in their earnings releases during the corporate earnings season, providing a counterbalance to the technology sell‑off.

Malaysia Market Impact On the FBM KLCI, foreign interest in banks remained. CIMB rose three sen to RM8.03, Maybank gained four sen to RM10.72, and Public Bank added one sen to RM4.71. Tenaga Nasional climbed 24 sen to RM14.18, PPB increased 16 sen to RM14.50, and Nestlé gained 40 sen to RM101.

Among the active stocks, Luster added 0.5 sen to 7.5 sen, Barakaha rose one sen to eight sen, and Velesto gained one sen to 22 sen. The gains in the banking and utilities sectors helped offset the weakness in technology shares, leading to a net positive movement in the index.

Sector and Company Specifics The technology sector, which had been a key driver of the market in recent weeks, faced a setback after Nvidia’s share price fell overnight. The decline was attributed to concerns about the company’s valuation and the broader semiconductor cycle. Despite this, the banking sector continued to attract foreign capital, with CIMB, Maybank, and Public Bank all posting gains.

Tenaga Nasional, the state‑owned electricity utility, benefited from a modest rise in its share price, reflecting investor confidence in the company’s stable earnings profile. PPB, a property developer, and Nestlé, a consumer staples firm, also saw gains, underscoring the resilience of these sectors in the face of global market volatility.

Outlook The market is expected to remain sensitive to the forthcoming U.S. core PCE data, which could influence expectations for future Fed policy moves. A higher‑than‑expected PCE reading could reinforce a risk‑on stance, potentially supporting further gains in the KLCI, particularly in the banking and utilities sectors.

In the short term, Malaysian equities are likely to continue reflecting a mix of domestic fundamentals and global macroeconomic developments, with technology stocks remaining vulnerable to valuation concerns and the banking sector benefiting from continued foreign interest.

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