Persistent buying in heavyweights lifts Bursa to end at intraday high
Additionally, investor confidence was further buoyed by policy clarity following Prime Minister Anwar Ibrahim's remarks during the Budget 2026 engagement session held in Putrajaya today.
UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Sedek Jantan said gains in the FBM KLCI accelerated in the afternoon session, reflecting improved investor sentiment following policy signals from the government and a constructive domestic economic data release.
'The government highlighted three strategic sectors – semiconductors, energy transition, and the Islamic economy – as core pillars of its forthcoming fiscal strategy.
'The budget consultation solicits feedback from a broad range of stakeholders, reinforcing the administration's commitment to inclusive and forward-looking fiscal planning,' he told Bernama.
On the economic front, Malaysia's industrial production index rose by 3% year-on-year in June 2025, driven by sustained growth in the manufacturing and electricity sectors.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.63 points or 0.50 % to close at 1,549.11 from yesterday's close of 1,541.48.
The benchmark index, which opened 0.98 of-a-point lower at 1,540.50, hit its lowest level of 1,537.74 in the morning session before gaining momentum for the rest of the day.
However, the broader market was negative, with decliners beating gainers 517 to 424, while 539 counters were unchanged, 1,025 untraded and nine suspended.
Turnover narrowed to 2.21 billion units worth RM2.35 billion from 2.51 billion units worth RM2.38 billion yesterday.
Among the heavyweights, Maybank and IHH were flat at RM9.63 and RM6.95, respectively.
Public Bank eased 1 sen to RM4.29, CIMB lost 3 sen to RM6.78, while Tenaga Nasional rose 58 sen to RM13.76.
Of the most active counters, Pharmaniaga, Tanco and Zetrix AI all slipped 1 sen to 17.5 sen, 77 sen and 86 sen, respectively, while Inari Amertron improved 3 sen to RM1.89, and Top Glove remained unchanged at 61.5 sen.
Across the broader market, the FBM Emas Index increased 33.64 points to 11,566.54, the FBMT 100 Index rose 36.80 points to 11,340.66, and the FBM Emas Shariah Index advanced 69.57 points to 11,606.16.
The FBM ACE Index improved 29.99 points to 4,630.88 while the FBM 70 Index dipped 30.09 points to 16,528.97.
By sector, the financial services index shaved 48.18 points to 17,494.46 and the energy index eased 2.94 points to 734.68, while the industrial products and services index inched up 0.26 of-a-point to 158.02, and the plantation index ticked up 1.03 points to 7,348.74.
The Main Market volume declined to 1.33 billion units valued at RM2.15 billion from 1.49 billion units valued at RM2.17 billion yesterday.
Warrants turnover dwindled to 620.69 million units worth RM97.15 million from 751.14 million units worth RM107.82 million previously.
The ACE Market volume slid to 258.67 million units worth RM99.50 million from 274.30 million units worth RM102.55 million yesterday.
Consumer products and services counters accounted for 162.63 million shares traded on the Main Market; industrial products and services (193.24 million), construction (103.66 million), technology (236.43 million), SPAC (nil), financial services (63.93 million), property (160.86 million), plantation (17.82 million), REITs (27.12 million), closed-end fund (6,500), energy (115.49 million), healthcare (130.37 million), telecommunications and media (22.79 million), transportation and logistics (33.31 million), utilities (60 million), and business trusts (37,700).
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The Star
2 hours ago
- The Star
Semiconductor tariff shock
KUALA LUMPUR: Local semiconductor companies in the tech supply chain will need to brace for impact since the United States has now voiced its clear intention to reshore these type of manufacturing back to the country with plans to impose a 100% tariffs on semiconductors. While Malaysia's semiconductor exports to the United States remain exempt from retaliatory tariffs for now, the Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the industry will be severely impacted if tariffs are eventually imposed on this sector. 'If semiconductors are subjected to tariffs under Section 232 or if there are future policy changes, the impact on the country will be significant. 'Malaysia risks losing a key market in the United States if our products become less competitive due to the imposition of these tariffs. 'However, it should be emphasised that, to date, the United States government has not yet announced in detail the implementation mechanism for the tariffs,' Tengku Zafrul told Parliament yesterday. 'Based on current information, exemptions are not country-based, but may only be granted to companies that invest directly in the United States, regardless of where their operations are located in other countries. 'Therefore, the impact will heavily depend on the investment and operational structure of multinational companies based in Malaysia,' he added in his reply. Based on 2024 data, Tengku Zafrul said Malaysia's exports of electrical and electronics (E&E) goods to the United States reached RM119.86bil, accounting for around 20% of the country's total E&E exports. Semiconductor exports alone were valued at some RM60.6bil, representing about 20% of Malaysia's total semiconductor exports. This industry involves more than 72,000 skilled workers and is supported by over 7,200 local suppliers, comprising mainly small and medium enterprises. 'The spillover benefits of the E&E and semiconductor industries also contribute to the growth of Malaysia's automotive, medical equipment, renewable energy, digital, and aerospace sectors,' he noted. 'Many companies which are based in Malaysia – the multinationals also have operations in the United States. 'While there is nothing formal yet (in writing), there will definitely will be an impact and we need to know more details – as to which companies in Malaysia –especially the United States companies that will be affected,' Tengku Zafrul later said at the Asean Business Community Development Forum 2025. He pointed out there are many US companies in Malaysia which have Malaysian suppliers and many of these are listed on Bursa Malaysia. 'The E&E sector is big in Malaysia. It is still early days and we don't know the details but definitely there will be an impact for those companies who are affected by these developments. 'There is anxiety among all players, not just from Malaysia,' Tengku Zafrul said. 'I'm sure our friends in Singapore are also very involved in this semiconductor supply chain in the United States and Vietnam to a certain extent as well. 'We will need to study this further as we get more information,' he added. Meanwhile, analysts are split on the effect the latest levies will have on the domestic semiconductor industry, noting that Malaysia is not a big-scale manufacturer per se, but is more active in the assembly, testing and packaging end of the production chain. While understandably concerned that this latest episode in the tariff saga could have global repercussions, industry observers are not entirely ruling out that US President Donald Trump could be open to another U-turn, or at least further discussions. Head of dealing at Moomoo Malaysia, Ken Low, told StarBiz it is significant that Malaysia is currently exempt from the proposed 100% tariff. This is especially given that Malaysia ranks as the third-largest supplier of semiconductors to the United States, accounting for around 14.6% of their total imports in this category. Low said future eligibility may be influenced by factors such as geographic diversification, supply chain resilience, and the presence of US-based manufacturing. 'As such, while the short-term outlook is stable, the landscape is fluid, and companies will need to stay adaptive as global trade policies evolve,' he said. He predicts that any indication of long-term alignment with global supply chain shifts – be it through US partnerships, local capacity building, or regional diversification – can offer valuable signals about a company's strategic agility and potential resilience in a more fragmented global market. Citing 2024 data, assistant manager of research at iFast Capital Kevin Khaw Khai Sheng pointed out that Malaysian exports of E&E products to the Unites States stood at approximately RM120bil, followed by RM113bil to Singapore, with the latter then re-exporting to other nations. Given the significant amount of US exports, he is expecting Malaysian semiconductor companies - whether they are outsourced semiconductor assembly and test (Osat) players or electronics manufacturing services (EMS) providers - to be impacted by the latest news, except for companies that are focused domestically or not exporting to the United States. 'The question is just the magnitude of how severe the impact to respective companies will be. That said, more clarity is still needed on how these new policies are going to be imposed and what would result from further negotiations. 'We believe global leaders will start to negotiate with the United States again regarding this new tariff and we will closely monitor the development,' Khaw said. On the other hand, head of equity sales and analyst at Rakuten Trade, Vincent Lau, believes it is too early to quantify the effect the new levies will have on Malaysian semiconductor companies, attributing the adverse reaction towards the share prices on industry players to a knee-jerk reaction. Performance of some Malaysian semiconductor stocks closed lower yesterday, with the notable exception of Inari Amertron Bhd which closed three sen up at RM1.89, having reached an intraday high of RM1.93. Globetronics Technology Bhd closed unchanged, Unisem (M) Bhd was five sen lower at 5pm yesterday, closing at RM2.32, while Malaysian Pacific Industries Bhd (MPI) retreated 20 sen to RM20.30, with Dagang Nexchange Bhd (Dnex) edged down one sen to close at 26 sen. Dnex owns 60% of Silterra Malaysia Sdn Bhd, who manufactures semiconductor wafers, while Globetronic produces optoelectronic and sensor components. Inari manufactures radio frequency chips for US firm Broadcom Inc and MPI makes advanced packaging for semiconductor devices. The domestic semiconductor industry is, to a significant extent, serving American multinational companies (MNCs), and therefore it is difficult at the moment to see how the '100% tariff' will affect local players, Lau said, especially since the current exemption for Malaysia's semiconductor still stands. 'Firstly, we are of the view that Trump is targeting the front end manufacturing, which is higher up in the value chain. 'Our companies largely make up the back-end manufacturing; testing and assembly stage of the ecosystem, especially for American MNCs, even though we have grown to become a key player for this part of the process,' he added. Kenanga Research, in a note to clients yesterday, anticipated the new tariffs to disrupt the global semiconductor supply chain. It said the protectionist stance could accelerate the shift of manufacturing footprints into the United States, particularly among firms seeking to mitigate tariff risks. Nonetheless, the brokerage firm added that clarity is still lacking on the specific product categories that fall under the definition of 'semiconductors' covered by the tariff, leaving room for further interpretation. 'Until full policy details are unveiled, the industry is likely to adopt a wait-and-see approach. 'We maintain our 'neutral' stance on the sector,' the research house said.
Free Malaysia Today
6 hours ago
- Free Malaysia Today
New homes for Elphil estate workers still on hold over cost issues
Sime Darby Plantation Bhd, now known as SD Guthrie Bhd, had agreed to hand over 4ha of land to Putrajaya for the construction of the homes. PETALING JAYA : The construction of new homes for workers at Elphil estate in Sungai Siput, Perak, under a special scheme is still on hold because of cost issues. Human resources minister Steven Sim said Sime Darby Plantation Bhd, now known as SD Guthrie Bhd, had agreed to hand over 4ha of land to Putrajaya for the construction of the homes. The company had agreed to this in February 2020, based on past reports. Sim said his ministry then held a series of discussions with the housing and local government ministry and Syarikat Perumahan Negara Bhd (SPNB) regarding the homes. 'The housing ministry and SPNB said there were costs that needed to be borne, and that there were constraints in terms of funding to carry out the development. 'Therefore, the proposed development through the housing ministry and SPNB could not proceed,' he said in a written parliamentary reply. Sim said the human resources ministry also held talks with SD Guthrie and the Perak Housing and Property Board (LPHP) on the proposal to build the homes for the estate workers. 'LPHP agreed in principle with the proposal. However, costs involving the transfer of land ownership, division of boundaries, and change in land use terms are still being studied by the ministry,' he said. He was responding to S Kesavan (PH-Sungai Siput), who asked for an update on the proposed home financing scheme for the Elphil estate workers. In May 2022, former human resources minister M Kulasegaran questioned if the government had abandoned plans to build these houses. He pointed out that SD Guthrie had agreed to allocate the land for the construction of about 100 units of medium-cost homes for the estate workers to purchase and own. Under the special scheme, he said, Bank Simpanan Nasional would offer the estate workers a 35-year loan with a 2% interest. The houses were supposed to cost less than RM150,000.
Free Malaysia Today
6 hours ago
- Free Malaysia Today
Migrant worker protection is about human rights, not just ILO rules, says Sim
Human resources minister Steven Sim said the government is still committed to reducing reliance on migrant workers as outlined in the 13th Malaysia Plan, from the current 15% to 10% by 2030. (Bernama pic) KUALA LUMPUR : The human resources ministry does not view migrant worker protection as a matter of mere compliance with International Labour Organization (ILO) conventions, but as one of human rights, says its minister. Steven Sim said the government's commitment to protecting migrant workers' rights is rooted in humanity. 'Beyond altruism, a system that exploits migrant workers will ultimately harm local communities as well. 'Just because Singapore isn't following (ILO conventions), doesn't mean we shouldn't. 'We must ensure all workers in this country are fairly treated,' he said at an event organised by the Institute of Strategic and International Studies Malaysia. Earlier this week, Malaysiakini reported former finance minister and DAP adviser Lim Guan Eng as saying in the Dewan Rakyat that there was 'no need to mandate the RM1,700 minimum wage and 2% EPF contributions for migrant workers' already in the workforce. Lim had pointed to Singapore's policy of not requiring Central Provident Fund contributions for migrant workers since 2003, without repercussions from the ILO. In response, PSM's deputy chairman S Arutchelvan slammed Lim's remarks yesterday as a 'blatant endorsement of modern-day exploitation'. Earlier today, former MP and Suaram director Kua Kia Soong also questioned whether DAP's stance on social justice and equality had changed. He said the party, which has long styled itself as 'the conscience of Malaysian politics', risked appearing like a 'hollow vessel' when it comes to defending labour rights. Meanwhile, Sim said the government is still committed to reducing reliance on migrant workers as outlined in the 13th Malaysia Plan, from the current 15% to 10% by 2030. 'We are now in the final stage of implementing a multi-tiered levy mechanism (MTLM) where employers pay more if they hire more foreign workers,' he said. According to the 13MP, the additional levy collections from the MTLM will be channelled into a newly established trust fund to promote automation and mechanisation.
