This article first appeared in Capital, The Edge Malaysia Weekly on December 29, 2025 - January 4, 2026

DESPITE a modest 1.4% gain for the FBM KLCI in 2025, the year was far from uneventful. It was a tale of extremes, marked by sharp swings in sentiment and pronounced sectoral divergence.

Coming off a strong 2024, optimism ran high that foreign investors would return to Bursa Malaysia. Expectations were anchored on firmer corporate earnings and anticipated US interest rate cuts. Those hopes quickly unravelled, as foreign funds turned persistent net sellers, sapping market momentum.

The first quarter of the year was dominated by heavy selldowns. News of US export controls on advanced artificial intelligence (AI) chips, coupled with the rise of cheaper Chinese AI models, delivered a double blow to sentiment. Construction and utilities stocks — the standout performers of 2024 amid Malaysia’s data centre boom — bore the brunt of the correction.

Volatility intensified in April after the US imposed fresh reciprocal tariffs, sending the benchmark index tumbling to a 21-month low of 1,386.63 points. Risk appetite only began to recover as tentative signals of a truce in US-China trade tensions emerged.

By July, bargain hunting and Bank Negara Malaysia’s 25-basis-point cut in the overnight policy rate (OPR) helped the market break out of its sideways channel.

Another rebound followed in October, buoyed by steady accumulation of heavyweight stocks ahead of the tabling of Budget 2026 on Oct 10.

Yet the optimism proved fleeting. November brought renewed selling pressure as investors moved to the sidelines ahead of Sabah’s state elections on Nov 29. Nevertheless, the FBM KLCI clawed its way to 1,665.9 points on Dec 19, buoyed by the US Federal Reserve’s third rate cut of the year, a move that rekindled global risk appetite and provided a welcome tailwind for regional equities.

Throughout 2025, investors adopted a defensive stance. Super large-cap stocks outperformed, with modest gains of 1.4%, while risk appetite evaporated further down the cap spectrum. The FBM Mid 70 Index slid 8.1% and the FBM Small Cap Index fell an even steeper 9.6%, sharply underperforming the benchmark.

The whole market added RM750 million in market capitalisation to RM2.014 trillion in 2025. Yet with new listings contributing RM3.18 billion in market value, incumbent stocks collectively ended lower. Market breadth was conspicuously weak: Of the 1,040 companies tracked, only 248 ended the year higher, compared with 762 decliners and 30 unchanged.

Gains that did materialise were concentrated in defensive sectors such as consumer staples, real estate investment trusts (REITs), plantations and banks, reflecting the cautious mood that defined the year.

Regionally, Malaysia lagged its peers. The FBM KLCI’s modest 1.4% return ranked it the third worst performer in the region, ahead only of Thailand’s SET Index, which fell 6.5%, and the Philippines’ PSEi, down 5.3%.

Elsewhere in Asia, markets surged. Indonesia’s Jakarta Composite Index climbed 26.4%, Singapore’s Straits Times Index rose 27.6%, Vietnam’s VN Index soared 38.2% and Taiwan’s TAIEX advanced 25.8%. Japan’s Nikkei 225 gained 28.9%, Hong Kong’s Hang Seng Index jumped 32.8%, while South Korea’s Kospi led the pack with a stunning 73.6% rally.

Against this backdrop, The Edge highlights the year’s biggest winners and losers by market cap — offering a clearer view of where value was created, and destroyed, in a turbulent year.

Among Bursa stocks with a market cap of above RM10 billion, 99 Speed Mart Retail Holdings Bhd (KL:99SMART) stood out as the clear winner of 2025. The consumer staples giant had surged 54% year to date (YTD) as at Dec 23, 2025, adding RM11.19 billion in value to reach RM31.92 billion in market cap, making it the 14th largest stock on the exchange.

The rally was catalysed by a boost to household spending, following the government’s one-off RM100 cash aid for all adults in late August. The initiative channelled discretionary spending directly into daily essentials, positioning 99 Speed Mart as a prime beneficiary and triggering a sustained rerating of the stock.

The uplift spilled across the consumer staples sector. Fraser & Neave Holdings Bhd (KL:F&N) climbed 29% YTD, while Nestlé (Malaysia) Bhd (KL:NESTLE) rose 16% for the year. Nestlé Malaysia’s rebound was particularly striking. After being dragged to a 10-year low of RM62.24 on March 20 amid Western boycott-related pressures, the stock surged nearly 87% to RM116.30, restoring RM12.68 billion in market value to RM27.27 billion.

Expectations of a second round of cash assistance, announced in Budget 2026 for February 2026, kept sentiment buoyant. A firmer ringgit further reinforced the outlook by easing imported raw material costs and supporting margins. The ringgit has appreciated more than 9% against the US dollar YTD, strengthening to 4.0538 at the time of writing.

Plantation stocks also delivered strong returns despite softer crude palm oil prices. Heightened concerns over land seizures in Indonesia stoked fears of supply disruptions, redirecting investor interest to Malaysian producers. United Plantations Bhd (KL:UTDPLT) surged 46% YTD, adding RM5.85 billion to reach RM18.57 billion in market cap, while SD Guthrie Bhd (KL:SDG) rose 13%, lifting its valuation to RM38.73 billion from RM33.7 billion.

Commodity-linked Press Metal Aluminium Holdings Bhd (KL:PMETAL) was another standout. Benefiting from record aluminium prices, the stock jumped 41%, adding RM16.57 billion — the largest single market cap increase on Bursa in 2025 — to end the year at RM57 billion.

On the downside, Petronas Chemicals Group Bhd (KL:PCHEM) endured a bruising year. Shares plunged 31.1% after consecutive quarterly losses, capped by a record net loss of RM1.08 billion for the second quarter ended June 30, 2025. The loss was driven by weaker earnings before interest, taxation, depreciation and amortisation; asset impairments at Sweden-based unit Perstorp Holding AB; higher unrealised foreign exchange losses; and elevated depreciation and finance costs. The stock shed RM12.85 billion in market value, closing the year at RM28.48 billion.

YTL Power International Bhd (KL:YTLPOWR) fell 24.2% and YTL Corp Bhd (KL:YTL) declined 20.6%, as earnings normalised in Singapore. Together, the two lost RM12.27 billion in market cap.

Gaming stocks pulled back as well. Genting Bhd (KL:GENTING) (-21%) and Genting Malaysia Bhd (KL:GENM) (-8.9%) slid following Genting’s failed attempt to privatise GENM and extended declines after their removal from the FBM KLCI in late 2024. Bargain hunters were left wanting, as both counters lost a combined RM4.3 billion in value.

In the large-cap universe, new listings dominated the leaderboard. Oriental Kopi Holdings Bhd (KL:KOPI) surged 184% YTD, lifting its market cap from RM880 million at initial public offering (IPO) to RM2.5 billion (+RM1.62 billion). Lim Seong Hai Capital Bhd (KL:LSH) jumped 113% to RM1.57 billion in market value from RM448 million, while HI Mobility Bhd (KL:HI) advanced 109% to RM1.28 billion (+RM670 million) — firmly establishing all three above the RM1 billion threshold.

Renewables emerged as another pocket of strength. Elridge Energy Holdings Bhd (KL:ELRIDGE) soared 138% YTD to RM2 billion in market value (+RM1.16 billion). Solarvest Holdings Bhd (KL:SLVEST) climbed 89%, expanding from a RM1.59 billion market cap to RM3.01 billion, while Pekat Group Bhd (KL:PEKAT) rose 59.6%, lifting its market cap to RM1.12 billion from RM700 million.

Oil and gas offshore services also delivered strong returns. Lianson Fleet Group Bhd (KL:LFG) rallied 92% to a market cap of RM2.18 billion (+RM1.05 billion), while Velesto Energy Bhd (KL:VELESTO) advanced 83%, adding RM1.07 billion in market cap to RM2.34 billion.

Other notable gainers included Southern Cable Group Bhd (KL:SCGBHD) (+81%, adding RM1.13 billion to a market cap of RM2.52 billion), Spritzer Bhd (KL:SPRITZER) (+82%, adding RM802 million in market cap to RM1.78 billion) and Farm Fresh Bhd (KL:FFB) (+52%, adding RM1.83 billion in market cap to RM5.32 billion), underscoring selective strength in industrial and consumer names.

The laggards told a different story. Export-oriented sectors were hit hard by a stronger ringgit and fierce competition. The glove sector’s post-pandemic slump deepened, with the “big four” glove counters — Hartalega Holdings Bhd (KL:HARTA) (-74%), Supermax Corp Bhd (KL:SUPERMX) (-69%), Kossan Rubber Industries Bhd (KL:KOSSAN) (-61%) and Top Glove Corp Bhd (KL:TOPGLOV) (-50%) — collectively losing RM22 billion in market value.

Electronics manufacturing services (EMS) and semiconductor stocks also struggled. Nationgate Holdings Bhd (KL:NATGATE) (-59%) saw RM3.45 billion in market value wiped out, while PIE Industrial Bhd (KL:PIE) (-56%) and V S Industry Bhd (KL:VS) (-56%) lost RM1.3 billion and RM2.49 billion in market cap respectively. D&O Green Technologies Bhd (KL:D&O) (-62%) shed RM1.58 billion market cap to RM1.02 billion, while Inari Amertron Bhd (KL:INARI) (-42%) lost RM4.89 billion to reach RM6.69 billion in market cap.

Property developers — 2024’s high flyers — reversed sharply in 2025. UEM Sunrise Bhd (KL:UEMS) (-48%), Mah Sing Group Bhd (KL:MAHSING) (-47%) and S P Setia Bhd (KL:SPSETIA) (-46%) together erased RM8.23 billion in market cap, reflecting sectoral rotation and weaker sentiment.

Mid-cap performance was shaped by a cluster of successful ACE Market debutants. THMY Holdings Bhd (KL:THMY), a semiconductor test solutions provider, surged 193%, expanding its market cap from RM275 million at IPO to RM804 million. Insights Analytics Bhd (KL:IAB), specialising in water management data analytics, climbed 162% to RM506 million from RM198 million at listing, while power utilities contractor Cheeding Holdings Bhd (KL:CHEEDING) advanced 128%, lifting its market cap to RM670 million from RM287 million.

Other notable gainers included Ecomate Holdings Bhd (KL:ECOMATE) (+77%) and Magma Group Bhd (KL:MAGMA) (+71%), both undergoing significant restructuring. Ecomate pivoted from furniture manufacturing into ICT solutions, while Magma diversified from hospitality into beverage retail under the Chagee brand and property development. Both expanded their market caps from around RM350 million to about RM600 million.

Data centre-related contractors also posted solid gains. Cooling energy solutions provider KJTS Group Bhd (KL:KJTS) rose 55%, adding RM318 million to reach RM889 million, while newly listed power engineering contractor CBH Engineering Holding Bhd (KL:CBHB) climbed 51%, expanding RM266 million to RM789 million. Sabah-based water bottler Life Water Bhd (KL:LWSABAH) delivered an impressive 56% return, lifting its market cap from RM425 million to RM662 million.

Two Chin Hin Group-linked companies also advanced: Signature Alliance Group Bhd (KL:SAG) gained 31% to RM815 million from RM620 million, while Ajiya Bhd (KL:AJIYA) rose 41% to RM548 million from RM389 million.

On the downside, Bermaz Auto Bhd (KL:BAUTO) slumped 56% YTD, erasing RM1 billion in value to RM797 million, pressured by intense competition from China-made vehicles. Astro Malaysia Holdings Bhd (KL:ASTRO) fell 53% after four consecutive quarters of weaker earnings, reducing its market cap by RM626 million to RM548 million. Cuckoo International (MAL) Bhd (KL:CKI), which debuted at RM1.6 billion, halved to RM800 million, slipping into the mid-cap bracket.

EMS players again dominated the losers’ list, reflecting persistent margin pressure and softer global demand. SKP Resources Bhd (KL:SKPRES) dropped 48%, losing nearly RM900 million; Supercomnet Technologies Bhd (KL:SCOMNET) fell 47%, erasing RM553 million; and Formosa Prosonic Industries Bhd (KL:FPI) declined 29%, shedding RM186 million.

Several small caps with recent ownership changes delivered standout returns in 2025.

Sinmah Capital Bhd (KL:SMCAP) surged 555% YTD, despite its Setapak mixed development project with the Kuala Lumpur Football Association (KLFA) falling through. The rally was buoyed by the re-emergence of substantial shareholder Leong Sai Mun, now executive director with a 14.25% stake. Its market cap jumped from RM26 million to RM172 million.

Jasa Kita Bhd (KL:JASKITA) gained 116%, rising from a market cap of RM53 million to RM115 million, after former Malaysia Digital Economy Corporation (MDEC) CEO Datuk Yasmin Mahmood, her husband Abd Azis Mohamad and brother Datuk Seri Iskandar Mizal Mahmood acquired a controlling stake from businessman Tan Sri Robert Tan Hua Choon, better known as the “Casio King”, and his son. The trio now holds 72.8% of the company.

ETA Group Bhd (KL:ETA), formerly Rex Industry Bhd, doubled its market cap from RM66 million to RM131 million after CEO Lim Chin Hui took over in June, securing a 55% stake. Meanwhile, MClean Technologies Bhd (KL:MCLEAN) rose 85% from a market cap of RM74 million to RM136 million on improved earnings following a takeover by Datuk Dr Terence Tea Yeok Kian via Singapore-listed Accrelist Ltd, where he now serves as executive chairman and managing director with 26.9% ownership.

New listings also impressed. Cleanroom engineering contractor iCents Group Holdings Bhd (KL:ICENTS) advanced 65% from a market cap of RM120 million at IPO to RM198 million, while social media marketer Foodie Media Bhd (KL:FOODIE) climbed 55% from RM266 million to a market cap of RM413 million.

On the flip side, MMAG Holdings Bhd (KL:MMAG) plunged 84%, erasing its 2024 rally and dropping from a market cap of RM1 billion to RM160 million. Tech and renewables-linked counters also struggled: SFP Tech Holdings Bhd (KL:SFPTECH) fell 79%, wiping out nearly RM1.4 billion in market cap; Genetec Technology Bhd (KL:GENETEC) slid 78%, losing RM860 million; YBS International Bhd (KL:YBS) dropped 74%, shedding RM176 million; and TT Vision Holdings Bhd (KL:TTVHB) fell 74%, erasing RM284 million. All were hit by disappointing earnings.

Meanwhile, LYC Healthcare Bhd (KL:LYC) lost nearly 80%, with its market cap plunging to RM15 million from RM75 million after slipping into Guidance Note 3 (GN3) status, reflecting financial distress as shareholders’ equity fell below 25% of issued capital.

Overall, super large caps were the only segment to post net growth, adding RM48.3 billion in market cap in 2025. All other segments declined despite contributions from new listings.

The steepest contraction came from the large-cap segment, which saw a net reduction of RM24.82 billion, followed by small-cap companies with a RM20.67 billion shrinkage. Mid-cap companies fared comparatively better, posting a more modest decline of RM2.06 billion.

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