Bursa Malaysia set for rebound after stronger-than-expected Q2 GDP growth
The Malaysian economy expanded by 4.4 per cent in 2Q 2025, driven by robust domestic demand as household spending was higher. In 2Q 2024, the country's economy expanded by 5.9 per cent.
The 2Q 2025 gross domestic product (GDP) growth was marginally above the consensus forecast of 4.3 per cent (UOB Kay Hian, Maybank Investment Bank, Hong Leong Investment Bank, and Bank Muamalat), though slightly below the 4.5 per cent advance estimate issued last month.
At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 6.66 points to 1,574.39 from yesterday's close of 1,581.05.
The benchmark index had opened 0.70 of a point firmer at 1,581.75 and moved between 1,571.19 and 1,581.79 throughout the morning trading session.
Market breadth was negative with 508 losers outpacing 302 gainers, while 449 counters were unchanged, 1,313 untraded and seven suspended.
Turnover stood at 1.11 billion units worth RM812.76 million.
UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, said the 2Q 2025 GDP print released today reaffirmed the resilience of the domestic economy despite an increasingly uncertain global trade policy backdrop.
He said the FBM KLCI opened softer at 1,581.75 and briefly touched 1,571.22 at 11.13 am, but sentiment is expected to stabilise and the index to recover as investors digest the stronger-than-expected GDP data.
'Key domestic demand drivers were notably firm, with private consumption rising from RM257.65 billion in 1Q 2025 to RM263.18 billion in 2Q 2025, and gross fixed capital formation increasing from RM91.67 billion to RM97.67 billion over the same period.
'These two components form the cornerstone of domestic growth and are poised to shape market direction in the near term,' he told Bernama.
He emphasised that the sequential gains in both private consumption and gross fixed capital formation highlight the sustainability of Malaysia's economic momentum.
'Taken together, these dynamics point to a durable growth trajectory and a constructive market outlook,' he said.
Mohd Sedek said for investors, the data provide reassurance that domestic demand will remain a dependable engine for corporate earnings, thereby reducing reliance on more volatile external markets.
'This resilience should continue to underpin equity valuations, particularly in consumer-oriented, construction, and infrastructure-linked sectors, while anchoring broader investor confidence in Malaysia's medium-term prospects,' he said.
Among the heavyweights, Public Bank and CIMB added 1.0 sen to RM4.46 and RM7.21, respectively. Tenaga Nasional and IHH Healthcare eased 6.0 sen each to RM13.62 and RM6.84, while Maybank was flat at RM9.84.
Among the most active counters, Tanco gained 1.0 sen to 73 sen, Oxford Innotech expanded 1.5 sen to 42.5 sen, Zetrix AI inched down half-a-sen to 89.5 sen, while TWL and Salutica were flat at 2.5 sen and 20.5 sen.
Across the broader market, the FBM Emas Index slid 47.38 points to 11,713.54, the FBMT 100 Index trimmed 48.11 points to 11,495.61, the FBM Emas Shariah Index decreased 74.31 points to 11,634.14, and the FBM Mid 70 Index declined 67.24 points to 16,622.69, but the FBM ACE Index rose 30.34 points to 4,696.88.
Sector-wise, the Financial Services Index rose 24.83 points to 18,075.36, the Plantation Index fell 66.12 points to 7,515.53, the Industrial Products and Services Index inched down 1.42 points to 157.52, and the Energy Index shaved 0.84 of a point to 738.65. — Bernama
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