PETALING JAYA: As 2025 draws to a close, Malaysia’s equity market is entering a more selective phase, characterised by steady participation and improving domestic sentiment.
Amid persistent global macro uncertainty and recalibrating interest rate expectations, Rakuten Trade Research observes that local market conditions remain constructive, supported by domestic liquidity and resilient consumption trends.
Recent market activity suggests that buying interest has been absorbed in an orderly manner.
In a statement yesterday, Rakuten Trade Research said this points to a healthier market structure where investors are increasingly guided by fundamentals and earnings visibility rather than short-term market movements.
“Domestic institutional participation has continued to play a stabilising role, providing an important anchor against external volatility and reinforcing confidence in Malaysia’s economic fundamentals,” it said.
While blue chips remain a key focus, Rakuten Trade Research believes opportunities are increasingly selective as the market transitions into year-end, with traditional festive-driven consumption during this period remaining a meaningful theme that could support selected sectors into year-end and early 2026.
With major festive celebrations occurring in close succession, household spending typically accelerates during this period, improving near term earnings visibility for companies exposed to everyday consumption.
This outlook is further supported by steady tourist arrivals, easing input cost pressures from a firmer ringgit and expectations of targeted cash assistance in the year ahead.
Within the consumer space, Rakuten Trade Research highlights several companies that are positioned to benefit from different spending behaviours.
Mr DIY Group (M) Bhd tends to benefit during the preparation phase as households spend on decorations, gifting items and home essentials ahead of celebrations. Its wide product assortment and value positioning allow it to capture incremental spending without reliance on big-ticket purchases.
99 Speed Mart Retail Holdings Bhd benefits from stock-up behaviour ahead of festive periods, supported by an essentials-heavy product mix and exposure to the government-led cash assistance initiatives.
In the beverages segment, Spritzer Bhd continues to stand out due to the culturally embedded nature of consumption during gatherings, with demand typically remaining stable even after festive periods while Farm Fresh Bhd benefits from increased home cooking and baking during festive seasons, which typically drives higher dairy consumption, while its strong cold-chain infrastructure supports margin stability and reduces wastage risks.
Fraser and Neave Holdings Bhd provides a more defensive exposure within the consumer space, supported by staple food and beverage products with recurring demand that offer earnings stability during periods of market uncertainty.
Beyond consumer-related opportunities, Rakuten Trade Research continues to view selected banking stocks as core holdings, supported by stable loan growth, resilient balance sheets and consistent earnings profiles. Defensive sectors, particularly consumer staples, also remain relevant for investors seeking to manage volatility while maintaining exposure to steady cash flows.
“As we approach the end of the year, market conditions remain constructive but disciplined. We are seeing steady participation, which is a positive sign for overall market stability. A strengthening MYR also acts as a solid catalyst attracting the return of foreign funds. In this environment, investors should focus on companies with clear demand drivers, resilient margins and recurring consumption rather than short-term market movements,” said Rakuten Trade research head Kenny Yee.
As investors position their portfolios toward the new year, Rakuten Trade Research believes patience and selectivity will remain key. Companies that combine seasonal uplift with everyday relevance are better placed to sustain earnings momentum beyond the festive period and into early 2026.
“As we close out 2025, we are grateful for the continued trust of Malaysian traders and investors. The year has been marked by shifting market dynamics, and we believe disciplined investing supported by timely, credible insights has become increasingly important. Rakuten Trade remains committed to supporting our clients with reliable research insights and seamless access to both local and global markets.
“As we move into 2026, our focus will remain on strengthening our digital capabilities and research offerings to help investors navigate markets with greater clarity and confidence,” said Rakuten Trade CEO Kazumasa Mise.
