27-07-2025
Bursa Review: Bursa Malaysia Ends Mixed As Trade Jitters Offset Fiscal Boost
Bursa Malaysia ended the week of July 21 on a mixed note as investors weighed positive domestic economic data and government fiscal support against lingering concerns over US-Malaysia trade tensions.
The benchmark FBM KLCI hovered in a narrow range between 1,524 and 1,540 throughout the week, reflecting cautious investor sentiment. It opened on July 21 at 1,524.59, slipping slightly as profit-taking activity followed the prior week's rally. Broad-based losses in mid- and small-cap counters, along with weaker regional cues, pressured the broader market.
Investor appetite remained subdued early in the week, despite Malaysia's stronger-than-expected second-quarter GDP growth of 4.5%, beating market forecasts of 4.2%. Optimism picked up mid-week on the back of positive Wall Street earnings and selective foreign inflows into blue-chip stocks.
On July 24, the KLCI surged 0.69% to close at a weekly high of 1,540.32, buoyed by the government's latest fiscal measures, including cash handouts, fuel subsidies and a freeze on toll hikes aimed at easing the cost of living. The policy support sparked renewed buying interest in consumer-related and construction-linked stocks.
However, gains were pared on July 25 as investors turned cautious ahead of the weekend, with uncertainty looming over potential US tariff adjustments affecting Malaysian exports. The KLCI retreated 0.43% to settle at 1,533.76, as heavyweights such as Maybank, Public Bank and TNB booked modest losses.
Market breadth was mixed throughout the week. Among the most actively traded stocks was NexG Bhd, which posted high volumes driven by speculative interest. Meanwhile, Sunway Construction Group Bhd saw sharp losses early in the week on heavy institutional selling, though bargain hunting helped stabilize selected counters later in the week.
Turnover remained moderate, averaging RM2.2-RM2.3 billion daily, as investors largely stayed on the sidelines awaiting greater clarity on global trade developments and the upcoming corporate earnings season.
Looking ahead, analysts expect the FBM KLCI to continue consolidating in the near term. Related
