KLCI Performance Overview
On April 29, 2025, the FTSE Bursa Malaysia KLCI (FBM KLCI) closed at 1,515.56, down 0.40% or 6.03 points from the previous day’s close of 1,521.59, aligning with earlier reports of a cautious market. The FBM Mid 70 Index dropped 0.19% to 15,904.88, while the FBM Small Cap Index saw a steeper decline of 0.26%, closing at 14,618.10. Trading activity was robust, with a total value of RM3.04 billion, an increase from the previous day’s RM2.62 billion, reflecting heightened market participation.
The ringgit strengthened further, reaching 4.3233 against the USD/MYR, a 0.59% gain year-to-date, which provided some support to consumer and import-dependent stocks. Market breadth showed 450 stocks unchanged, with 405 gainers slightly outnumbering 506 losers, indicating a mixed sentiment among investors.
Movers and Shakers
The summary of price movers highlights key performers on April 29, 2025:
- Top Gainers by Value:
- Nestlé (Malaysia) Bhd: Gained 3.40% to close at RM84.22, with a trading volume of 40,300 shares. Its year-to-date (YTD) decline of 15.76% suggests a recovery in investor confidence.
- Malayan Banking Bhd: Up 0.80% to RM10.16, with a high volume of 18,680 shares, reflecting stability in the financial sector.
- Petronas Dagangan Bhd: Rose 0.80% to RM19.20, supported by a volume of 408 shares, benefiting from energy sector resilience.
- Top Losers by Value:
- Petronas Gas Bhd: Dropped 0.420% to RM16.80, with a volume of 714 shares, despite earlier gains in the month.
- Kuala Lumpur Kepong Bhd: Fell 0.280% to RM19.50, impacted by global commodity price fluctuations.
- Fraser & Neave Holdings Bhd: Declined 0.240% to RM26.20, with a YTD drop of 10.55%.
- Top Active Stocks:
- Velesto Energy Bhd: Confirmed as the most active stock with 79.63 million shares traded, though its price dipped 0.005% to RM0.150, aligning with earlier reports of high trading volume.
- Notion VTEC Bhd: Traded 36.39 million shares, down 0.025% to RM0.670, reflecting volatility in the tech sector.
- WCT Holdings Bhd: Saw 26.47 million shares traded, unchanged at RM0.285.
Additional insights from earlier in the week show consumer stocks like 99 Speed Mart Retail Holdings Bhd (up 2.24% to RM2.79) and Mr DIY Group Bhd benefiting from the stronger ringgit, which reduced import costs. Plantation stocks like IOI Corp Bhd (previously up 1.95%) faced pressure from global palm oil price volatility.
Policy Changes Impacting KLCI
Malaysia’s Policy Responses
Malaysia continues to navigate global trade challenges:
- On April 25, a trade delegation led by Minister Tengku Datuk Seri Zafrul Abdul Aziz engaged with U.S. officials to secure tariff exemptions. While the 90-day tariff pause (until July 2025) offers temporary relief, no permanent resolution was achieved, keeping export-driven sectors on edge.
- The government is considering adjustments to its 2025 GDP growth forecast of 4.5%–5.5%, as global trade uncertainties weigh on economic projections.
Global Policy Impacts
- U.S. Tariffs: The U.S. imposed a 24% tariff on Malaysian exports, effective April 9, 2025, affecting key sectors like electronics, palm oil, and medical devices. This contributed to a 7.3% KLCI drop in Q1 2025, though the current tariff pause has spurred some recovery.
- Trump’s Trade Policies: President Trump’s 104% tariff on Chinese goods continues to disrupt global trade flows, reducing external demand for Malaysian exports. The World Trade Organization’s forecast of an 81% drop in U.S.-China trade adds further pressure.
- Medical Device Sector: Malaysia’s RM13.7 billion medical device exports to the U.S. (37% of its global exports) face increased costs due to tariffs on U.S. and Chinese components, impacting companies in this sector.
Market Outlook
Analysts maintain a cautious outlook for the KLCI, with Kenanga Research projecting a modest 2% earnings growth for 2025, despite tariff pressures. The index’s forward earnings multiple of 14.3 remains below the 10-year average, suggesting undervaluation. The tech sector shows resilience, while consumer and financial stocks, such as Malayan Banking Bhd, offer stability with attractive dividend yields. Foreign fund inflows of RM137 million on April 28 signal returning confidence, though participation remains low at 35%. The KLCI is expected to hover between 1,510–1,520 in the near term, pending global developments.