KLCI outperforms regional markets with 1.8pct April surge
KUALA LUMPUR: The Kuala Lumpur Composite Index (KLCI) climbed 1.8 per cent to reach 1,540 points in April 2025, outperforming both the Morgan Stanley Capital International (MSCI) Emerging Market Index and the MSCI All Country Asia ex-Japan Index.
According to CGS International, within the Asean region, the KLCI outshone Singapore's Straits Times Index (STI), which was the only market to post a decline for the month, dropping 3.5 per cent month-on-month (MoM).
Out of the 13 sectoral indices on Bursa Malaysia, five posted gains in April, with telecommunications, consumer, and healthcare emerging as the top three performers, recording MoM increases of 4.9 per cent, 4.2 per cent, and 3.4 per cent, respectively.
In contrast, the energy sector was the weakest performer, slumping 9.2 per cent MoM, followed by transport and technology, which fell by 5.3 per cent and 4.7 per cent, respectively.
"Out of the 30 KLCI companies, 20 posted share price gains in April 2025, with the three best performers on a mom basis being MR DIY Group (M) Bhd (19.1 per cent), Axiata Group Bhd (17.3 per cent), and Nestle (Malaysia) Bhd (17.1 per cent).
"Notably, consumer and telco names made up eight of the top 10 gainers in the KLCI, which we think was due to the market shifting towards names with more domestic exposure that are relatively shielded from global uncertainties," it said.
CGS International said Bursa Malaysia's average daily trading value dropped by 17.8 per cent month-on-month (MoM) to RM2.2 billion, while the average daily trading volume declined by 4.5 per cent MoM to three billion units.
"We believe the stock market remained jittery and tentative in its trading in April, as President Donald Trump's Liberation Day tariff announcement on April 2 led to the market declining further before recovering as he subsequently announced a 90-day pause on additional tariffs above the baseline 10 per cent rate applicable to all countries.
"This likely led to the mom decline in Bursa Malaysia's average trading value and volume, as investors stayed cautious amidst global geopolitics and economic uncertainties," it said.
CGS International noted that the KLCI had a turbulent start to 2025, driven by external factors such as the US's restrictions on AI chips and newly re-elected President Trump's aggressive tariff measures.
The firm acknowledged the ongoing macroeconomic uncertainties, highlighting that the unpredictability of US trade policy could negatively affect corporate earnings in Malaysia and weigh on overall market sentiment.
"Our end-2025 KLCI target is 1,680 points," it added.
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