A yo-yo.
That would have been my answer if someone were to ask me what I thought of the KLCI for the past 5 years.
And to be honest, I am not wrong.
An investor who had bought the KLCI 5 years ago would have seen his investments swung both sides – from negative -15% to a meagre +3%.
+3% over the past 5 years is clearly underperforming even your banks’ savings account interest rate.
However, since December, KLCI saw a huge uptick. The index breach 1,700 – a 5-year high.
So what are the stock components that are pulling up the KLCI, and will there be more upside potentials of these companies?
A quick check on TradingView, and I was able to filter our the outliers that is feeling KLCI’s rally
1. YTL Power International Berhad (KLSE: YTLPOWR)
Malaysia’s data centre darling had a triumphant rally back in 2023, rallying from below RM1 per share up till a peak of more than RM5 a share.
Over the past 5 years, shares surged by more than +500%, fuelled by data centre deals (AI hyperscalers), power/water demand, and renewables push. Despite profit dips (FY2025 net profit was -26% YoY to RM2.52B on costs), there are investors who believe that the momentum might persist with FY2026 revenue forecast of more than RM 23 billion.
Some may see this healthy pull back now might be a chance to get into position. I see some short to midterm prospects before data centres become saturated in Malaysia.
2. Sunway Berhad (KSLE: SUNWAY)
Sunway delivered +267% returns over five years, evolving from property/construction to integrated township leader with healthcare and data centres. It has a RM6.5B order book to fuel growth via Penang projects, hospital expansions, and DC ventures.
Upward trajectory persists with diversified revenue, strong balance sheet for acquisitions, and with the KLCI weight aiding re-rating.
Although it seems odd to have a property player rallying that much over the past 2 years, but based on technicals, there looks to be no major corrections signalled. The AI and data centre catalyst might be here for the time being, boosting and supporting further upside.
3. YTL Corporation Berhad (KLSE: YTL)
Just like Sunway, YTL Corp gained around +233%+ over five years, benefiting from group synergies in power (its stake in YTLPOWER), cement, telecom, and property like Brabazon UK. Data centre spillover and hydrogen combined cycle gas turbine (CCGT) projects which bolstered the stocks’ outlook, driving a re-rating.
The conglomerate’s net profit for the Q1’26, which ended on 30th September, 2025 rose 3.8% to RM346.48 million from RM333.71 million a year earlier. Revenue, however contracted by -1.7% to RM7.64 billion from RM7.77 billion.
There’s 2 sides of a coin when looking at YTL. It might be diversified, which means the company does not necessarily relies on data centre and construction to boost its prospects, but as a conglomerate, it has been trading at with a conglomerate discount, evident from its flattish share price prior to the sudden rally.
4. Gamuda Berhad (KLSE: GAMUDA)
Gamuda has been on the top buy lists since 2023. It is widely regarded as a key beneficiary of Malaysia’s infrastructure cycle, backed by robust order books and exposure to both domestic and international projects.
The average target price of RM6.46 implies an upward potential gain of 40% from its latest settlement price, representing one of the largest upsides among large-cap stocks.
It is no coincidence that all 3 major construction and property stocks are pulling up the KLCI. Compared to the SGX which has been carried by Singapore banks, Malaysia’s 3 major construction players bolstering KLCI represents one potential scenario – that there is more upside to come, which can lift even the banking sectors due to financing requirements.
5. CIMB Group Holdings Berhad (KLSE: CIMB)
Property and banks go hand in hand. So no surprises to see CIMB taking up the fifth spot, and rallying by more than +100% over the last 5 years.
NIM recovery, loan growths and its ASEAN expansion, bode well in its performances as the bank rallied steadily over the past few years.
As OPR rates taper downwards, the environment also becomes more cost-friendly for retail and commercial. Valuation wise, CIMB trades at a dividend yield of 4.7% which is modest, and price to book wise of around 1.3x, signalling potential premium.
Verdict
Although I have my own concerns on the longevity of the euphoria that is sweeping around Malaysia’s major construction stocks, the point is that these sectors rarely enjoy short term tailwinds.
Their tailwinds last for a few years. And to be honest, Malaysia’s economy is doing relatively well. So that is also a boon for banking stocks.
Although one concern lies around the corner – the ever volatile political scene as Malaysia braces itself for its upcoming elections. A change in ruling government or even sentiments of a potential change might spook foreign investments and funds to invest further.
My thoughts, if the blueprint for Malaysia’s upcoming 5 years remains firm, and no major structural changes in the ruling government, this could be a great year for Malaysian markets and equities.
