3 days ago
- Business
- New Straits Times
Utilities, energy sectors outperform Bursa Malaysia in June
KUALA LUMPUR: Investors turned to defensive sectors in June, with utilities and energy leading Bursa Malaysia's performance for the month, according to CIMB Securities.
In its June 2025 monthly wrap note, the research firm said the gains were supported by institutional interest and selective foreign inflows.
The utilities index rose 4.3 per cent month-on-month, while the energy index climbed 3.8 per cent far outperforming the benchmark FTSE Bursa Malaysia KLCI, which gained 1.6 per cent during the same period.
"Utilities was the top performer month-on-month, followed by the energy sector," it said.
Local institutional investors were the largest net buyers of utility stocks in June, with inflows totalling RM545.9 million.
Foreign investors also recorded net buying of RM52.5 million, while retail and nominee investors were net sellers in the sector.
The sectoral trend comes amid concerns over earnings risks from the expanded Sales and Service Tax (SST), heightened geopolitical tensions earlier in the month and the looming risk of a United States tariff decision.
"We expect the market to remain range-bound in the near term owing to concerns over potential earnings risks from the expanded SST and uncertainty surrounding the US tariff outcome on July 9," CIMB Securities said.
