Markets

KUALA LUMPUR — Bursa Malaysia pared earlier gains to close lower on Monday, as investors adopted a more cautious posture ahead of the US tariff negotiation deadline on Aug 1.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 4.38 points, or 0.29 per cent, to close at 1,529.38 from Friday’s close of 1,533.76.

The benchmark index opened 4.29 points firmer at 1,538.05 and moved between 1,528.34 and 1,539.38 throughout the trading session.

In the broader market, losers led gainers 554 to 420, while 488 counters were unchanged and 1,091 untraded, with 43 suspended.

Turnover improved to three billion units worth RM2.30 billion from 2.86 billion shares worth RM2.16 billion on Friday. 

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research, Mohd Sedek Jantan, noted that the FBM KLCI commenced the week’s trading on a firm footing, posting early gains during the morning session.

However, the momentum proved unsustainable into the afternoon, with the index closing lower as investors adopted a more cautious posture ahead of Thursday’s US tariff deadline.

“Among the FBM KLCI constituents, plantation and utility counters led the gainers, aligning with our weekly view that investor positioning would favour domestically oriented sectors amidst heightened external uncertainty.

“We anticipate markets will continue to consolidate in the near term, awaiting further signals from the Malaysia-US trade talks or any fresh tariff-related announcements from US President Donald Trump,” he told Bernama.

Mohd Sedek noted that regional peers delivered a mixed performance on Monday, weighed by profit-taking and concerns over global trade developments.

Hong Kong’s Hang Seng gained 0.68 per cent to close at 25,562.13, South Korea’s Kospi garnered 0.42 per cent to 3,209.52, while Singapore’s Straits Times Index lost 0.27 per cent to 4,249.48, and Japan’s Nikkei 225 shed 1.10 per cent to 40,998.27.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the local benchmark index closed below the 1,530 level due to late selling. He noted that market sentiment was subdued as investors awaited more details from the US-China trade discussions, set to begin in Stockholm later today.

Thong said the local bourse remains in consolidation mode, hovering around the 1,530 level due to a lack of fresh catalysts. “For the moment, we expect the FBM KLCI to trend range-bound, hovering within 1,510-1,540 points for the week. We notice crude palm oil (CPO) futures remain above RM4,000 per tonne, and we believe this is an opportunity to accumulate plantation stocks,” he added.

Of the heavyweight stocks, Maybank, CIMB and IHH Healthcare were all flat at RM9.54, RM6.75 and RM6.66, respectively. Public Bank fell four sen to RM4.25 and Tenaga Nasional slid 24 sen to RM13.36. Petronas Chemicals jumped eight sen to RM3.61, and Nestle surged RM2.50 to RM88. 

Among the most active stocks, Ekovest added four sen to 44 sen, NexG inched up half a sen to 53 sen, and Tanco grew one sen to 92.5 sen. Zetrix AI went down 7.5 sen to 83.5 sen and YTL Corporation slipped three sen to RM2.45.

Among top gainers and decliners, SAM Engineering and Equipment rallied 13 sen to RM4.20, while Fraser and Neave and Infomina were 10 sen higher each at RM29 and RM1.1, respectively. United Plantations dropped 32 sen to RM21.90, and Petronas Dagangan lost 26 sen to RM21.44 to lead the losers.

Across the broader market, the FBM Emas Index dropped 34.62 points to 11,472.20, the FBMT 100 Index slipped 37.27 points to 11,232.45, and the FBM Emas Shariah Index lost 38.94 points to 11,490.04.

The FBM 70 Index fell 77.16 points to 16,530.41 while the FBM ACE Index shaved 2.42 points to 4,636.60.

By sector, the Plantation Index grew 28.44 points to 7,463.23, the Industrial Products and Services Index inched up 0.25 of a point higher to 157.39, and the Energy Index climbed 0.94 of a point to 740.79. The Financial Services Index sank 45.86 points to 17,408.37.

The Main Market volume improved to 1.67 billion units valued at RM2.03 billion from 1.26 billion units valued at RM1.85 billion.

Warrant turnover slipped to 1.01 billion units worth RM161.01 million from 1.28 billion units worth RM218.03 million previously.

The ACE Market volume rose to 323.13 million units worth RM106.95 million from 313.89 million units worth RM90.97 million.

Consumer products and services counters accounted for 236.86 million shares traded on the Main Market; industrial products and services (218.34 million), construction (182.64 million), technology (469.30 million), SPAC (nil), financial services (63.27 million), property (170.58 million), plantation (13.29 million), REITs (15.88 million), closed-end fund (900), energy (110.48 million), healthcare (42.84 million), telecommunications and media (33.72 million), transportation and logistics (39.83 million), utilities (71.07 million), and business trusts (27,000). — BERNAMA

The post Bursa pares gains to close lower on cautious sentiment ahead of US tariff deadline appeared first on The Malaysian Reserve.

FOREIGN investors extended their net selling streak on Bursa Malaysia to three consecutive weeks while local institutions extended their net selling streak to two consecutive weeks. 

Foreign investors registered a net outflow of RM89.9 million for the week ended July 25, smaller than previous week outflow of RM206.1 million, according to a fund flow report by MBSB Research, formerly known as MIDF Research.

The top counters net sold by foreign investors were Zetrix AI Bhd, KPJ Healthcare Bhd and Public Bank, RHB Bank Bhd and Alliance Bank Malaysia Bhd.

The report said local retailers continued their net buying activities, extending to a three-week consecutive streak of purchases, posting a net inflow of RM105.4 million. — TMR

The post Foreign, institutional investors net sold on Bursa Malaysia last week appeared first on The Malaysian Reserve.

KUALA LUMPUR — The risk of higher United States (US) tariffs on Malaysia as the Aug 1 deadline draws near is likely to weigh on Bursa Malaysia next week, although domestically-oriented counters are expected to remain relatively resilient, supported by firm internal demand and fiscal tailwinds.

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said volatility is expected to intensify as markets approach a critical inflection point in global trade policy.

“Domestically-oriented counters on Bursa Malaysia are likely to remain relatively resilient. However, export-driven sectors may continue to face pressure in the absence of a favourable resolution to the tariff negotiations,” he told Bernama.

He noted that no formal announcement has been made on the revised US tariff schedule for Malaysia.

“Should Malaysia succeed in securing a rate below the symbolic 20 per cent threshold, we anticipate renewed investor interest, particularly in the manufacturing and electrical and electronics sectors. Until then, most investors are expected to adopt a wait-and-see approach, prioritising capital preservation over risk-taking,” he said.

Regionally, market focus is shifting towards renewed US–China trade diplomacy as Chinese Vice Premier He Lifeng is set to lead high-level negotiations in Sweden from July 27–30, ahead of the expiry of the 90-day tariff suspension on Aug 12.

“The outcome will be instrumental in shaping regional trade sentiment and broader market tone heading into August,” Mohd Sedek said.

Globally, investor attention remains fixed on a packed US macroeconomic calendar, particularly with the upcoming the Federal Open Market Committee meeting on July 30, the June Personal Consumption Expenditure inflation print and July non-farm payrolls, which will provide important policy signals.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said market participants will turn their focus to China’s July Purchasing Managers Index as well as Eurozone Consumer Price Index.

For the week just ended, optimism spurred by Prime Minister Datuk Seri Anwar Ibrahim’s “appreciation package” and renewed confidence in domestic fiscal support lifted utilities and consumer counters, but the momentum proved short-lived as broad-based selling later overshadowed mid-week support from telco stocks.

For the week under review, the benchmark index rose 7.90 points to 1,533.76 on Friday from 1,525.86 a week earlier.

The FBM Emas Index increased 26.99 points to 11,506.82 and the FBMT 100 Index gained 28.03 points to 11,269.72, but the FBM Emas Shariah Index slid 8.89 points to 11,528.98, the FBM 70 Index dipped 90.15 points to 16,607.57 and the FBM ACE Index dropped 32.77 points to 4,639.02.

By sector, the Financial Services Index jumped 99.4 points to 17,454.23, the Plantation Index reduced 7.10 points to 7,434.79 and the Energy Index went up 0.21 of a point to 739.85.

Weekly turnover narrowed to 11.92 billion units worth RM11.43 billion from 15.53 billion units worth RM11.77 billion in the previous week.

Main Market volume slid to 6.63 billion units valued at RM9.70 billion compared with 6.73 billion units valued at RM10.07 billion previously.

Warrant turnover grew to 7.10 billion units worth RM1.15 billion from 6.83 billion units worth RM966.72 million in the preceding week.

ACE Market volume shrank to 1.68 billion units valued at RM577.05 million versus 1.97 billion units valued at RM729.96 million previously. — BERNAMA

The post Tariff uncertainty to weigh on Bursa Malaysia next week appeared first on The Malaysian Reserve.

KUALA LUMPUR — Bursa Malaysia finished at its intra-day high for the second straight session on Thursday, driven by global optimism and the latest round of government fiscal aid that led investors to be back in the local market.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 10.53 points, or 0.69 per cent, to close at an intra-day high of 1,540.32, compared to Wednesday’s close of 1,529.79.

The index opened 1.26 points higher at 1,531.05 and moved between 1,529.71 and 1,540.32 throughout the trading session.

Gainers led losers in the broader market 502 to 474, while 496 counters were unchanged and 1,044 untraded, with seven suspended.

Turnover, however, slipped to 2.97 billion shares worth RM2.3 billion from 3.27 billion shares worth RM2.26 billion on Wednesday.  

SPI Asset Management managing partner Stephen Innes said the FBM KLCI traded firmer buoyed by hopes that the worst of the tariff storm may be behind as the United States (US)-Japan deal, inked at 15 per cent, has the market betting that other trading partners, including Malaysia could secure similar outcomes, potentially keeping tariffs below the 20 per cent mark.

“That shift in expectations is stoking risk appetite across Asia. Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim’s announcement of RM100 cash handouts for all adult Malaysians and targeted fuel price relief adds a dose of local stimulus, reinforcing the bid on domestic equities.

“Boosted by global optimism and the government fiscal aid, investors are back in force,” he told Bernama.

UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said a sharp surge in the final hour of trading lifted the composite index, suggesting renewed investor confidence and short-term accumulation ahead of key global macroeconomic events.

“Market sentiment was buoyed by the government’s latest fiscal stimulus announcements, which provided a supportive backdrop for risk assets. Notably, foreign funds turned net buyers for the day, signalling a shift in sentiment likely driven by the perceived credibility and market-friendly orientation of the new fiscal measures,” he said.

Mohd Sedek elaborated that among FBM KLCI constituents, petrochemical stocks led the gains, reflecting sector-specific optimism amid improved global demand signals and positive developments in trade negotiations.

The Industrial Products and Services Index extended its winning streak, underpinned by expectations tied to the recently announced US-Japan trade agreement, which was viewed by markets as a favourable benchmark for regional trade realignments.

“With the deadline for ongoing tariff negotiations approaching, recent bilateral agreements by Indonesia, Japan and the Philippines have reduced external uncertainty and lifted investor appetite for export-oriented counters. There is growing optimism that the US may scale back the proposed 25 per cent tariff on Malaysian goods, further improving the external outlook,” he added.

Mohd Sedek also cautioned that attention now turns to key US economic data releases, including new home sales figures, S&P Global Purchasing Managers Index and weekly jobless claims.

“Initial jobless claims have registered five consecutive weeks of decline, while continuing claims have stabilised since mid-June, reinforcing the narrative of a resilient US labour market and shaping expectations for the Federal Reserve’s upcoming policy direction,” he said.

Elsewhere, Hong Kong’s Hang Seng advanced 0.51 per cent to close at 25,667.18, Singapore’s Straits Times Index improved 0.97 per cent to 4,272.48, and South Korea’s Kospi gained 0.21 per cent to 3,190.45. Japan’s Nikkei 225 rallied 1.56 per cent to 41,826.34.

Of the heavyweight stocks, Maybank earned four sen to RM9.63, Public Bank improved two sen to RM4.31, Tenaga Nasional was flat at RM13.94, CIMB and IHH Healthcare were both up three sen at RM6.70 and RM6.65.

Top gainers were led by Nestle, surging RM5.42 to RM82.32, Petronas Dagangan was 50 sen higher at RM21.50, BLD Plantation improved 42 sen to RM10.92, PPB Group and Petronas Chemicals earned 32 sen to RM9.62 and RM3.69, respectively.

Among the most active stocks, Zetrix lost three sen to 91.5 sen, Tanco was flat at 91.5 sen, NexG erased half-a-sen to 51.5 sen, Lotte Chemicals gained 11 sen to 70.5 sen and Tan Chong dropped one sen to 86.5 sen.

On the index board, the FBM Emas Index climbed 56.63 points to 11,551.17, the FBMT 100 Index rose 60.40 points to 11,314.56, and the FBM Emas Shariah Index advanced 64.48 points to 11,580.96.

The FBM 70 Index added 14.78 points to 16,658.87, while the FBM ACE Index lost 22.54 points to 4,642.51.

Sector-wise, the Industrial Products and Services Index rose 2.73 points to 158.16, the Plantation Index gained 58.52 points to 7,469.96, the Financial Services Index jumped 75.33 points to 17,505.58, but the Energy Index fell 4.50 points to 738.68.

The Main Market volume narrowed to 1.37 billion units valued at RM1.96 billion from 1.44 billion units valued at RM1.89 billion.

Warrant turnover trimmed to 1.24 billion units worth RM207.50 million from 1.52 billion units worth RM257.66 million previously.

The ACE Market volume improved to 362.14 million units worth RM131.90 million from 315.55 million units valued at RM97.33 million previously.

Consumer products and services counters accounted for 220.6 million shares traded on the Main Market; industrial products and services (278.27 million), construction (97.53 million), technology (261.82 million), SPAC (nil), financial services (61.28 million), property (177.63 million), plantation (14.89 million), REITs (22.3 million), closed-end fund (nil), energy (64.42 million), healthcare (57.49 million), telecommunications and media (40.4 million), transportation and logistics (28.64 million), utilities (42.42 million), and business trusts (62,600). — BERNAMA

The post FBM KLCI closes at intra-day high for second session as investors regain risk appetite appeared first on The Malaysian Reserve.