Kuala Lumpur, June 3, 2025 – The FTSE Bursa Malaysia KLCI (FBM KLCI) closed lower today, dropping 5.10 points or 0.34% to 1,503.25. This marks its lowest level in over a month, reflecting cautious investor sentiment amid disappointing first-quarter earnings and rising global trade tensions. The broader market also saw declines as investors await key economic data and central bank decisions.
Market Movers and Shakers on June 3, 2025
- Top 10 Movers and Laggards (FBM KLCI):
- Sime Darby Bhd: Down 1.73% to RM 3.730.
- CelcomDigi Bhd: Up 1.61% to RM 4.290.
- Malayan Banking Bhd: Down 0.65% to RM 8.920.
- Tenaga Nasional Bhd: Up 0.82% to RM 12.280.
- Press Metal Aluminium Holdings Bhd: Down 2.22% to RM 4.900.
- Top 10 Active Stocks (Bursa Malaysia): Permaju Industries Bhd, ICT Zone Asia Bhd, and Tanco Holdings Bhd led with high trading volumes.
- Top 10 Gainers and Losers (by value): Gainers included Pressmetal Aluminium Holdings Bhd and Public Bank Bhd, while losers featured British American Tobacco (Malaysia) Bhd and Genting Malaysia Bhd.
Policy Changes and Their Impact
- Malaysian Developments:
- CIMB Securities revised 2025-2026 FBM KLCI earnings forecasts down by 5.6% due to weak Q1 2025 results, lowering the end-2025 target to 1,560 points.
- EPF reported a 13% drop in Q1 2025 investment income to RM18.31 billion, citing global volatility.
- MIDA secured RM4.68 billion in Japanese investments, boosting confidence in Malaysia’s green and digital sectors.
- Bank Negara Malaysia is enhancing FX market flexibility.
- Global Factors:
- Trade tensions between the US and China persist, impacting Malaysia’s export sectors.
- The US Federal Reserve’s single expected rate cut and rising Treasury yields affect emerging markets.
- The IMF cut its 2025 global growth forecast to 2.8%, signaling a challenging economic environment.
Outlook for KLCI June 3 2025 Market Update
The KLCI faces downside risks from global trade uncertainties and domestic policy shifts, such as fuel subsidy changes and higher tariffs in H2 2025. However, strong liquidity, a strengthening ringgit, and initiatives like the National Energy Transition Roadmap offer support. Investors should target companies with defensive earnings or dividend yields.