The FBM KLCI closed higher for the second consecutive session on June 26, 2025, gaining 8.37 points or 0.55% to finish at 1,528.16. The market was buoyed by broad-based buying interest and positive performance across regional bourses. Improved sentiment from a clearer US political outlook and accommodative US monetary policy signals also contributed to the upward trend.
Broader indices also saw gains, with the FBM 70 adding 40.56 points to 16,270.66, the FBM EMAS advancing 52.24 points to 11,398.80, and the Shariah index climbing 39.35 points to 11,341.13.
Top Movers and Shakers
Several counters experienced notable movements:
- YTL Corp surged 13 sen to RM2.27, with significant trading volume.
- YTL Power soared 20 sen to RM3.90.
- Tanco remained steady at 93 sen, seeing high trading activity.
- Maybank, Tenaga Nasional, and IHH Healthcare each rose two sen.
- Public Bank gained four sen, and CIMB advanced three sen.
- Reservoir Link (RL) saw a slight dip of 2 sen to 20.5 sen.
- SNS Network slipped 1.5 sen to 54.5 sen.
- Petronas Chemicals gained 15 sen to RM3.43.
- Dialog Berhad gained 4 sen to RM1.57.
Overall, market breadth was positive, with 509 gainers outpacing 406 losers, and 495 counters remaining unchanged.
Policy Changes Impacting KLCI
Malaysian Policies: While no major new Malaysian government policy changes were announced directly impacting the KLCI on June 26, 2025, earlier in the month, the FTSE Bursa Malaysia KLCI semi-annual review concluded with constituent changes taking effect on June 23, 2025. The Bank Negara Malaysia (BNM) maintained its Overnight Policy Rate (OPR) at 3.00% but adjusted the Statutory Reserve Requirement (SRR) ratio to 1.00% in May to ensure liquidity, clarifying it was not a shift in monetary policy stance. The market continues to monitor the potential impact of factors like Sales and Service Tax (SST) implementation, wage adjustments, and ongoing discussions around fuel subsidy reforms.
Global Policies: Global developments played a significant role in market sentiment:
- US Monetary Policy: A clearer outlook on US monetary policy, with increasing likelihood of a more accommodative stance, provided a positive impetus to Bursa Malaysia. While the Federal Reserve maintained a cautious approach to rate cuts, increasing disagreement within the Fed has raised expectations for a potential policy shift.
- Geopolitical Concerns: Easing geopolitical tensions, specifically a tentative cease-fire between Israel and Iran, contributed to a rally in global equities, benefiting the KLCI.
- Trade Tensions: The ongoing tariff war narrative, particularly between the US and China, continues to be a factor influencing global financial markets. A US court ruling in May that President Trump exceeded his authority on certain tariffs has added to market uncertainty.