Malaysia Stock Index Expected to Continue Consolidation Through February

The Kuala Lumpur Composite Index (KLCI) is forecast to see continued consolidation through February, with limited upward momentum expected as global risk sentiment remains cautious. Central bank policy remains neutral, and inflation is in check, but geopolitical tensions and U.S.-China trade dynamics are weighing on risk assets. If no major macroeconomic data surprises emerge, the KLCI could trade within a narrow range of 1,450-1,500 points. Institutional trading and foreign flow are likely to remain net outflow, keeping pressure on the index.