KUALA LUMPUR – The FTSE Bursa Malaysia KLCI (FBM KLCI) rose today, June 23, 2025. It closed at 1,516.61, up 13.87 points or 0.92% from Friday. This gain came from strong bargain hunting and local investor interest. The market climbed even with a cautious global economic outlook and rising tensions in the Middle East.
The index opened lower at 1,493.19. It dipped to 1,488.89 early in the day. However, it rebounded and closed at its highest point. The broader market was mixed. Declining stocks outnumbered gainers 697 to 274. Also, 490 counters remained unchanged. Trading volume increased to 3.09 billion units, valued at RM1.91 billion.
Global Pressures and Local Strength
The ongoing conflict between Iran and Israel continues to worry global markets. Recent US airstrikes on Iranian nuclear facilities intensified the situation. Therefore, key regional indices mostly fell today as investors became more cautious. The initial market reaction to the US strikes saw a sell-off. Both the S&P 500 and STOXX 600 saw declines.
Oil prices surged after the escalation. Brent crude neared $75 per barrel. However, analysts believe a sustained blockade of the Strait of Hormuz is unlikely for now. Despite these external pressures, the FBM KLCI showed resilience. Analysts noted that local bargain hunting quickly provided support. High crude oil prices should also boost oil and gas stocks. This could offer a buffer for the Malaysian market.
Malaysia’s Policy Landscape
Malaysia continues its focus on reforms under the Madani economic framework. The country recently climbed 11 spots to 23rd globally in the 2025 World Competitiveness Ranking. This shows effective fiscal, industrial, and social policies. Enhanced investment strategies and trade promotion played a part. Efforts to simplify investment approvals and reduce red tape are ongoing. The Ministry of Investment, Trade and Industry (MITI) is key in this area.
The government will not reintroduce the Goods and Services Tax (GST) due to low incomes. Recent subsidy rationalization and tax reforms aim to protect vulnerable Malaysians. They also curb wasteful subsidies. Changes to the Sales and Services Tax (SST) take effect on July 1, 2025. These are expected to have a small impact on inflation.
Key Stock Movers
Here are some top movers based on the provided data:
- Public Bank Bhd: Gained RM0.21 (+4.99%) to RM4.42. Volume reached 15.85 million.
- CIMB Group Holdings Bhd: Rose RM0.15 (+2.26%) to RM6.80. Volume was 1.68 million.
- Maybank: Edged up RM0.01 (+0.10%) to RM9.67.
- Tenaga Nasional: Gained RM0.08 (+0.70%) to RM14.30.
The most active stock was PUC Bhd. It traded 1,134.40 million units but fell RM0.005 (-0.00%) to RM0.015. Reservoir Link Energy Bhd increased RM0.06 (+16.22%) to RM0.43, with 578.10 million units traded.
Top Losers
Nestlé (Malaysia) Bhd led the decliners. It fell RM19.78 (-20.56%) to RM76.40, with 0.15 million units traded. Petronas Chemicals Group Bhd lost RM0.15 (-0.26%) to RM5.80, with 3.47 million units traded.
Market Outlook
Investor sentiment will likely stay fragile due to global uncertainties. However, the FBM KLCI is expected to trade between 1,500 and 1,530 this week. These are its support and resistance levels. Malaysia’s focus on domestic demand and ongoing reforms may offer some protection from global volatility.