16-07-2025
Malaysian stocks slip as US inflation weighs on sentiment
KUALA LUMPUR: The US inflation print proved higher than ideal for investors, triggering a sell-down in US equities, the impact of which was seen trickling down to the Malaysian market today.
Following the previous day's slump from the overarching bearishness caused by the US tariffs saga, the FBM KLCI continued to slip in Wednesday morning trade, losing 1.63 points to 1,529.69.
Malaysian investors are expected to remain on the sidelines as they await for more insights into the health of the world's largest economy, said TA Securites in its commentary.
In the pipeline this week are more US economic indicators and a flurry of earnings reports from major corporations.
Malacca Securities said it was bullish on semiconductor-related stocks following recent global trade developments.
"We believe the overall situation may favour the technology stocks with the resumption of chip sales in China and the technology sector on the
local front may see decent buying interest," it said in a note.
Meanwhile, the research firm reiterated a favourable view on Wentel Engineering due to the potential for greater demand for the security screening industry after the implementation of certain US trade policies, as well as real estate investment trusts for the recent overnight policy rate cut by Bank Negara.
The consumer sector could also benefit from downtrading activities due to sticky inflationary pressure, it added.
On the Malaysian market today, NexG led the actives, rising one sen to 48.5 sen. Runner-up TWL was flat at 2.5 sen.
Third most-traded today was NationGate, which is the subject of a Malaysian Anti-Corruption Commission investigation, rebounding four sen to RM1.53.
