
Analysts: Bursa Malaysia likely to extend gains next week on upbeat GDP and tariff optimism
He foresees the FTSE Bursa Malaysia KLCI (FBM KLCI) trading within the 1,540-1,550 range, potentially retesting levels recorded prior to the deadline of the reciprocal tariff deferral.
'While (the United States) President Donald Trump's administration has yet to announce any formal amendments to Malaysia's tariff arrangement, the precedent set by recent favourable outcomes for Indonesia and Vietnam lends credence to the prospect of Malaysia's 25 per cent tariff being reviewed,' he told Bernama.
Furthermore, he said the stronger-than-expected second-quarter gross domestic product figure should offer a constructive backdrop for market sentiment in the week ahead.
'In our assessment, the combination of resilient domestic growth and compelling equity valuations, particularly within a selectively risk-on environment is likely to continue attracting foreign investor interest into the Malaysian market,' he added.
According to the Statistics Department Malaysia (DoSM), Malaysia's economy is forecast to grow by 4.5 per cent in the second quarter of 2025 (2Q 2025) based on advance gross domestic product (GDP) estimates, slightly outpacing the previous quarter's 4.4 per cent.
Growth is expected to be driven by robust domestic demand amid global headwinds.
For the week just ended, the benchmark index fell 10.21 points to 1,525.86 from 1,536.07 a week earlier. The FBM Emas Index declined 63.75 points to 11,479.83, the FBMT 100 Index dropped 67.05 points to 11,241.69, the FBM Emas Shariah Index slid 14.60 points to 11,537.87, the FBM 70 Index shed 63.63 points to 16,697.72, while the FBM ACE Index rose 133.62 points to 4,671.79.
By sector, the Financial Services Index dipped 253.30 points to 17,354.83, the Plantation Index reduced 8.56 points to 7,441.89 and the Energy Index went up 1.51 points to 739.13.
Weekly turnover narrowed to 15.53 billion units worth RM11.77 billion from 16.21 billion units worth RM11.43 billion in the previous week.
Main Market volume fell to 6.73 billion units valued at RM10.07 billion, compared with 6.99 billion units valued at RM10.02 billion previously.
Warrant turnover depreciated to 6.83 billion units worth RM966.72 million from 7.82 billion units worth RM911.38 million a week earlier.
ACE Market volume widened to 1.97 billion units valued at RM729.96 million versus 1.41 billion units valued at RM490.78 million previously. — Bernama
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Malay Mail
17 minutes ago
- Malay Mail
Bursa Malaysia dips for second day as weak sentiment persists
KUALA LUMPUR, July 22 — Bursa Malaysia closed 0.34 per cent lower on Tuesday, marking its second straight day of decline, as the lack of buying support and absence of strong cues from key regional indices continued to weigh on sentiment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) erased 5.19 points to 1,519.40 from yesterday's close of 1,524.59. The benchmark index opened 1.70 points higher at 1,526.29 at the opening bell and moved between 1,518.75 and 1,527.90 throughout the trading session. The market breadth was negative, with 591 losers overtaking 412 gainers and 472 counters unchanged, while 1,004 were untraded and seven suspended. Turnover fell to 2.82 billion shares worth RM2.05 billion from 3.5 billion shares worth RM2.68 billion on Monday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI trended lower due to the lack of buying support as most key regional indices ended in negative territory amid cautious trading ahead of the Aug 1 deadline for potential US trade tariffs. 'Investors are wary of various external factors given the increasing regional market volatility and uncertainties on global economic prospects. 'We reckon the short-term outlook to remain jittery although bargain hunting may prevail, hence, we expect the FBM KLCI to trend range-bound hovering within 1,510-1,540 for the remainder of the week with immediate support at 1,510 and resistance at 1,530,' he told Bernama. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said Malaysia's June Consumer Price Index by the Department of Statistics Malaysia offered a temporary reprieve, with June's headline inflation moderating further to 1.1 per cent year-on-year from 1.2 per cent in May, which is the softest print in 2025. 'Therefore, the FBM KLCI registered a marginal decline for the second consecutive session, underscoring a risk-averse market posture amid divergent sectoral performances. 'This disinflationary trend provided a tailwind for consumer-oriented equities, particularly within retail trade and consumer discretionary segments, as market participants priced in the prospect of sustained household consumption despite persistent fiscal uncertainties surrounding the expansion of the Sales and Service Tax and a lacklustre external demand environment,' he added. On the capital flows front, foreign institutional investors reverted to net selling positions yesterday, after a brief interlude of net buying. 'This reversal suggests sustained risk-off sentiment linked to external trade policy risks, with particular market sensitivity to the impending deadline of Malaysia's bilateral tariff negotiations with the United States, a key event risk that could shape investor positioning in the near term,' he said. Regionally, market sentiment received a slight lift from Hong Kong, where the Hang Seng Index posted its third successive daily gain, advancing 0.5 per cent to close at 25,130.03, the highest level in over a year. Elsewhere, Singapore's Straits Times Index declined 0.24 per cent to 4,196.98, South Korea's Kospi dropped 1.27 per cent to 3,169.94, and Japan's Nikkei 225 retreated 0.11 per cent to 39,774.92. Of the heavyweight stocks, Maybank and Public Bank perked one sen each to RM9.53 and RM4.31, CIMB earned three sen to RM6.55, Tenaga Nasional was flat at RM13.78 while IHH Healthcare dropped three sen to RM6.60 Among the most active stocks, Tanco up half-a-sen to 91 sen, Zetrix down one sen to 92.5 sen, NexG was flat at 50.5 sen and Pharmaniaga lost half-a-sen to 21.5 sen. On the broader index board, the FBM Emas Index fell 42.20 points to 11,419.73, the FBMT 100 Index shed 42.88 points to 11,181.94, and the FBM Emas Shariah Index dropped 62.36 points to 11,447.35. The FBM 70 Index dipped 84.01 points to 16,555.87, while the FBM ACE Index trimmed 13.08 points to 4,624.60. By sector, the Energy Index edged up 0.67 of a point to 740.17, but, the Financial Services Index decreased 9.74 points to 17,310.67, the Plantation Index slipped 24.89 points to 7,396.15 and the Industrial Products and Services Index erased 1.60 points to 154.04. The Main Market volume narrowed further to 1.18 billion units valued at RM1.73 billion from 1.38 billion units valued at RM2.27 billion on Monday. Warrant turnover fell to 1.31 billion units worth RM205.15 million from 1.75 billion units worth RM265.26 million previously. The ACE Market volume dropped to 322.4 million units valued at RM109.22 million from 363 million units from valued at RM147.63 million previously. Consumer products and services counters accounted for 176.58 million shares traded on the Main Market; industrial products and services (199.34 million), construction (107.34 million), technology (219.35 million), SPAC (nil), financial services (64.74 million), property (167.49 million), plantation (10.88 million), REITs (22.49 million), closed-end fund (5,000), energy (50.69 million), healthcare (76.35 million), telecommunications and media (39.95 million), transportation and logistics (24.88 million), utilities (22.21 million), and business trusts (308,300). — Bernama


Malay Mail
17 minutes ago
- Malay Mail
Ringgit edges higher against US dollar ahead of tariff deadline
KUALA LUMPUR, July 22 — The ringgit closed higher against the US dollar on Tuesday, amid a mixed performance in regional currencies, as investors adopted a wait-and-see approach ahead of the United States (US) tariff negotiation deadline, an analyst said. At 6 pm, the ringgit rose to 4.2300/2370 against the greenback, compared with Monday's close of 4.2320/2365. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said there is an impression that the tariff negotiations could extend beyond the Aug 1 deadline. 'Asian currency performance against the US dollar was rather mixed, as the Chinese yuan, Thai baht and Korean won depreciated, while the Indonesian rupiah and the Philippines peso strengthened. 'The ringgit opened on a stronger footing in the morning session, rising to as high as RM4.2273 against the US dollar. However, it hovered around RM4.2325 during the afternoon session,' he told Bernama. Meanwhile, SPI Asset Management managing partner Stephen Innes said the ringgit traded sideways as local traders remained cautious, noting that a negotiated compromise with Washington could pave the way for modest gains, especially if the tariff rate comes in below expectations. 'For now, traders are marking time. But this calm will not last forever. Aug 1 is not just a tariff deadline, it is the next macro landmine on Asia's summer calendar,' he added. At the close, the ringgit traded lower against a basket of major currencies. It dipped against the Japanese yen to 2.8690/8739 from 2.8612/8644, fell against the British pound to 5.7088/7183 from 5.6954/7015 and declined versus the euro to 4.9512/9594 from 4.9277/9330 at Monday's close. The local note also traded mostly lower against most Asean currencies. It depreciated vis-à-vis the Singapore dollar to 3.3011/3071 from 3.2990/3028, weakened against the Thai baht to 13.0899/1172 from 13.0754/0954, and edged down versus the Philippine peso to 7.41/7.43 from 7.40/7.41. The ringgit, however, traded slightly higher against the Indonesian rupiah at 259.1/259.7 from 259.2/259.6. — Bernama


New Straits Times
17 minutes ago
- New Straits Times
Pavilion REIT's net profit rises to RM78.66mil in second quarter
KUALA LUMPUR: Pavilion Real Estate Investment Trust (Pavilion REIT) posted a higher net profit of RM78.66 million in the second quarter ended June 30, 2025 (2Q 2025) compared to a net profit of RM67.12 million in the same quarter the preceding year. Revenue also increased to RM213.34 million from RM201.30 million last year, it said in a filing to Bursa Malaysia today. It said the increase was mainly contributed by Pavilion Bukit Jalil, driven by higher occupancy rate and income generated from its exhibition centre and advertising spaces. For the first half of 2025 (1H 2025), Pavilion REIT's net profit rose to RM169.08 million against RM150.28 million a year earlier, while revenue also improved to RM441.52 million versus RM419.82 million previously. It said the improved performance was driven by improved advertising revenue generated from the upgraded LED screen at Elite Pavilion Mall. On its prospects, Pavilion REIT said the resilient domestic demand is expected to anchor its growth, driven by labour market improvements, accommodative policy settings, and tourism recovery. "Businesses in the retail industry adopt a cautious stand, given that cost pressures remain elevated with service tax imposed on rental and leasing of commercial spaces, higher minimum wages and subsidy rationalisation measures, which will reduce operating margin. "Despite these factors, Pavilion REIT Management Sdn Bhd will continue its proactive management of Pavilion REIT's investment properties to give its unitholders steady distributions," it said. Meanwhile, in a separate filing, the company announced an interim income distribution of 0.32 sen per unit for the financial year ending Dec 31, 2025, comprising a taxable 0.31 sen per unit and a non-taxable 0.01 sen per unit. -- BERNAMA