Kuala Lumpur, June 5, 2025 – Bursa Malaysia closed higher for the second day, a positive trend for the benchmark FBM KLCI. It advanced by 10.15 points (0.67%), settling at 1,518.12. This upward movement reflects continued bargain hunting following last week’s sell-off. Furthermore, strong regional market performance and hopes for easing global inflation also boosted investor confidence.
The KLCI traded between 1,509.25 and 1,520.34, showing steady investor sentiment. The broader market also saw significant gains, with more gainers than decliners. Trading activity increased, with turnover reaching 2.42 billion units valued at RM2.27 billion.
Key Market Movers and Shakers
Based on the provided data and market reports, several stocks showed significant movement today:
Top 10 FBM KLCI Movers (One-day change):
- YTL Corp Bhd: Surged 6.69% to RM2.03, continuing its recent climb.
- YTL Power International Bhd: Soared 6.09% to RM3.51.
- Petronas Chemicals Group Bhd: Gained 3.58% to RM3.36.
- Press Metal Aluminium Holdings Bhd: Added 3.06% to RM5.05.
- Sime Darby Bhd: Rose 2.94% to RM1.75.
- Public Bank Bhd: Increased 0.99% to RM4.08.
- Nestlé (Malaysia) Bhd: While a top 10 mover by volume, its price actually declined 0.97% to RM77.00 today.
- Tenaga Nasional Bhd: Gained 0.26% to RM14.20.
- PPB Group Bhd: Declined 0.94% to RM15.80.
- Telekom Malaysia Bhd: Rose 0.17% to RM5.80.
Top Active Stocks (Bursa Malaysia):
- Signature Alliance Group Bhd (SAG): Led activity, jumping 8 sen to RM0.70 on a huge volume of 909.1 million shares.
- MYEG Services Bhd: Gained 3 sen to RM0.93 with 637.4 million shares traded.
- YTL Corp Bhd: Also showed strong activity due to its significant price surge.
- Gamuda Bhd: Attracted investor interest, adding 8 sen to RM4.74.
- Nexgram Holdings (NEXG): Slipped 0.5 sen to RM0.375.
Top Gainers (Bursa Malaysia by Value):
- Public Industries Bhd: Closed at RM20.50, up 0.26%.
- YTL Power International Bhd: Closed at RM3.51, up 6.09%.
- Tenaga Nasional Bhd: Closed at RM14.20, up 0.26%.
- Petronas Dagangan Bhd: Closed at RM24.30, up 0.12%.
- Press Metal Aluminium Holdings Bhd: Closed at RM5.05, up 3.06%.
Top Losers (Bursa Malaysia by Value):
- Nestlé (Malaysia) Bhd: Closed at RM77.00, down 0.97%.
- United Plantations Bhd: Closed at RM27.70, down 0.38%.
- Country View Bhd: Closed at RM1.94, down 0.30%.
- Hong Leong Bank Bhd: Closed at RM19.94, down 0.19%.
- Panasonic Manufacturing Malaysia Bhd: Closed at RM32.18, down 0.12%.
Policy Changes: Impacting the KLCI
Several policy developments, both domestic and global, are poised to influence the KLCI:
Malaysian Policies:
- FBM KLCI Constituent Review: AMMB Holdings Bhd (AMBANK) will rejoin the FBM KLCI, replacing Hong Leong Financial Group Bhd (HLFG). This change takes effect on June 23. It reflects AMMB’s improved market capitalization and compliance with index requirements, following a semi-annual review by FTSE Russell and Bursa Malaysia.
- National ESG Strategic Plan (NESP): The Economy Ministry is finalizing the National ESG Strategic Plan, aligning it with global ESG frameworks. This plan will guide Malaysian businesses toward ESG compliance and sustainable practices. Potentially, it could create “green finance opportunities” and establish Malaysia as a regional leader in the green economy. Therefore, companies with strong ESG credentials might benefit.
- 13th Malaysia Plan (13MP): The upcoming launch of the 13th Malaysia Plan is expected to provide more clarity on economic direction and structural reforms. This could positively impact investor sentiment.
- Minimum Wage Enforcement: A minimum wage of RM1,700 will be enforced in two phases during 2025 (Feb 1 and Aug 1), under the Minimum Wages Order 2024. This change may affect corporate earnings, especially for labor-intensive industries. Investors should monitor potential inflationary pressures.
- Electricity Subsidy Reforms: Reforms to electricity subsidies are ongoing. They aim to eliminate the need for budget financing from 2025 onwards. This represents another significant domestic policy change.
Global Policies and Economic Shifts:
- US-China Trade Tensions: Investors are closely watching trade tensions between the US and China. The US has extended a pause on tariffs for certain Chinese goods. However, any escalation or resolution in these talks could significantly affect global trade and, consequently, Malaysia’s trade-reliant economy. Export-oriented sectors, technology companies, and small-cap stocks are particularly vulnerable to these risks.
- US GDP Growth Forecast Revision: The Organisation for Economic Co-operation and Development (OECD) has revised its US GDP growth forecast for 2025 downward, from 2.2% to 1.6%. This recalibration of interest rate expectations benefits regional equity markets, with Asian indices generally outperforming. It could lead to further rate cuts by the Federal Reserve (Fed).
- Global Monetary Easing: Expectations of potential monetary easing in major economies could also support the KLCI. For example, global tech stocks found support from declining US Treasury yields.
Outlook and Analyst Commentary
Analysts maintain a cautious but optimistic view on the FBM KLCI. While Q1 2025 corporate earnings were mixed, leading some research houses to trim year-end targets, the market shows underlying resilience. Attractive valuations and stable corporate earnings are seen as supportive factors. The benchmark index is expected to trade within the 1,500-1,530 range towards the weekend. Foreign buying interest in Malaysian equities also briefly returned in May, though outflows were observed again towards the end of the month.
Overall sentiment remains upbeat. Investors are awaiting key US payroll data due this Friday, along with further updates on global trade developments.