21/01/2025
Summary of the stock market performance and outlook for 2024:
Domestic Stock Market (Malaysia)
• Malaysian stocks performed well, with the FBM KLCI (main stock index) growing 13% in 2024.
• The FBM EMAS Shariah Index (Shariah-compliant stocks) increased by 14.6%.
• The FBM Mid 70 Index (mid-sized companies) outperformed significantly, rising by 28.9%.
• The FBM Small Cap Index (smaller companies) grew by 9.8%, driven by gains in construction and property-related stocks.
Foreign Stock Market
• U.S. stocks surged by 20.2%, helped by expectations of lower interest rates and a focus on technology stocks.
• China’s stock market rose 10.5%, supported by government stimulus measures.
• Taiwan saw a gain of 16.7%, thanks to growth in semiconductor stocks.
• Other countries had mixed results, with South Korea declining by 23.5% and Indonesia down by 10%.
Key Takeaways
1. Technology and semiconductor-related companies were the big winners globally.
2. Malaysia’s stock market growth was driven by utilities, financials, construction, and property sectors.
2025 Outlook
1. The U.S. market will focus on interest rate changes and government policies on trade and spending.
2. China’s growth depends on how well it can boost exports and domestic spending.
3. ASEAN countries, including Malaysia, are expected to benefit from tourism, resilient domestic spending, and increased foreign investments due to businesses relocating supply chains.
Rosliza CR
Agency Manager Public Mutual Berhad
