The FTSE Bursa Malaysia KLCI (FBM KLCI) extended its losses on March 7, 2025, closing at 1,547.27, down 0.75% (11.64 points) from the previous session. The index has dropped 5.79% year-to-date (YTD) as investors react to both domestic economic trends and global market headwinds.
Key Market Highlights
- Total market volume: 2.447 billion shares traded
- Total market value: RM2.434 billion
- Market breadth: 332 gainers vs. 565 losers, with 488 stocks unchanged
Major Gainers and Losers
Top Performers in FBM KLCI
- Telekom Malaysia Bhd (RM6.90, +1.77%)
- PPB Group Bhd (RM11.50, +1.41%)
- Malayan Banking Bhd (RM10.64, +0.76%)
- Sime Darby Bhd (RM2.15, +0.47%)
- CelcomDigi Bhd (RM3.56, +0.28%)
Biggest Decliners in FBM KLCI
- YTL Corp Bhd (RM1.81, -3.72%)
- Maxis Bhd (RM3.37, -3.71%)
- Kuala Lumpur Kepong Bhd (RM20.52, -2.75%)
- IOI Corp Bhd (RM3.73, -2.61%)
- Petronas Gas Bhd (RM16.88, -2.37%)
Most Active Stocks (By Volume)
- MyEG Services Bhd (81.84 million shares, -0.07 to RM0.90)
- Oppstar Bhd (40.35 million shares, -0.06 to RM0.535)
- NationGate Holdings Bhd (39.79 million shares, -0.09 to RM1.33)
- CIMB Group Holdings Bhd (33.12 million shares, +0.02 to RM7.52)
- Dagang NeXchange Bhd (32.57 million shares, +0.025 to RM0.305)
Sectoral and Economic Trends
Banking Sector Mixed Amid Rate Stability
- Bank Negara Malaysia (BNM) held its Overnight Policy Rate (OPR) at 3% on March 6, citing strong domestic economic resilience despite concerns about global trade disruptions.
- Maybank gained 0.76% (RM10.64), while CIMB edged up 0.26% (RM7.52).
Palm Oil and Plantation Stocks Show Stability
- The EU-Malaysia Free Trade Agreement (FTA) negotiations, revived in January 2025, have boosted sentiment in the plantation sector.
- United Plantations Bhd surged 1.22% (RM23.28) amid expectations of higher palm oil exports.
Global Policy Impact on KLCI
1. U.S. Tariff Uncertainty Weighs on Sentiment
The KLCI remains pressured by global concerns over the U.S. administration’s tariff plans:
- Tariff hikes on Chinese exports, set for April 2, 2025, have fueled investor caution.
- Malaysian tech and semiconductor stocks, including NationGate (-6.35%), faced headwinds amid worries about chip export restrictions.
2. Ringgit Weakness Affects Foreign Investment
- The USD/MYR exchange rate stood at 4.4143, reflecting a 1.30% YTD depreciation.
- A weaker ringgit may deter foreign investors from Malaysian equities, particularly in capital-intensive sectors like construction and technology.
Market Outlook: What’s Next?
- Short-Term Volatility Expected: With global trade uncertainties and weak regional market sentiment, KLCI may remain range-bound.
- Opportunities in Defensive Sectors: Stocks in utilities (Telekom Malaysia, Petronas Gas) and plantations could offer resilience.
- Key Levels to Watch: Support at 1,540, resistance near 1,560.
Conclusion
While global economic pressures persist, Malaysia’s strong domestic fundamentals and potential trade deals may support long-term recovery. Investors should watch out for global tariff updates, U.S. interest rate policies, and key earnings reports in the coming weeks.