KUALA LUMPUR, Malaysia – June 30, 2025 – Bursa Malaysia concluded its trading day on a positive note, marking a third consecutive session of gains. The benchmark FBM KLCI rose by 4.80 points (0.31%) to close at 1,532.96, wrapping up the second quarter with modest gains of 1.3%, though it experienced a 6.65% slip over the first half of the year.
The broader market saw 531 stocks gaining against 443 declining, with 506 counters remaining unchanged. Turnover surged to 3.57 billion units valued at RM2.68 billion, indicating robust trading activity.
Top Movers and Shakers on June 30, 2025
Key contributors to the FBM KLCI’s upward movement included Press Metal and IHH Healthcare. Other actively traded stocks included EAH, Nexgram, NEXG, Astro, Bumi Armada, Tanco, MYEG, NextG, Gamuda, and YTL Corporation. Among the heavyweights, Maybank, Public Bank, Tenaga Nasional, CIMB, and CelcomDigi also experienced notable movements.
Key Policy Changes and Their Impact on KLCI
Malaysian Policy Landscape:
- FTSE Bursa Malaysia Index Series Review: Effective June 23, 2025, AMMB Holdings Berhad officially joined the FTSE Bursa Malaysia KLCI, replacing Hong Leong Financial Group Berhad. This structural change within the index reflects ongoing market adjustments.
- Foreign Investment Inflows: Bursa Malaysia recorded a net inflow of RM33.2 million from foreign investors on June 30, reversing a five-week selling trend, a positive sign for market confidence.
- Fiscal Policy Adjustments: The Malaysian government is navigating delicate fiscal reforms. The planned rationalization of RON95 fuel subsidies might be delayed, and the expansion of the sales and service tax (SST) was postponed from May to June. These delays, while aimed at avoiding domestic disruptions, could impact the 2025 fiscal deficit target.
- Johor-Singapore Special Economic Zone (SEZ): Momentum is building for the Johor-Singapore SEZ, with a full framework agreement targeted by the third quarter of 2025. This initiative is expected to foster economic cooperation and unlock growth potential in the Johor region.
- EPF Investment Strategy: The Employees Provident Fund (EPF) has increased its annual investment allocation to over 70% for the domestic market, aligning with the Prime Minister’s call to shift its investment portfolio to a 70:30 domestic-foreign split. This long-term strategy aims to bolster local market liquidity and stability.
Global Policy and Economic Influences:
- US Trade Tariffs: Investor caution remains high as a 24% US reciprocal tariff is slated to come into force on July 9. Malaysia is actively negotiating with the US administration to reduce these import duties on strategic export sectors, as these tariffs could significantly impact export-oriented industries.
- US Federal Reserve Interest Rate Decisions: Global market sentiment continues to be heavily influenced by the US Federal Reserve’s interest rate decisions. Growing expectations of rate cuts later in the year have previously provided a boost to markets, including Bursa Malaysia.
- China’s Economic Outlook: Regional markets are closely watching China’s economic data. The contraction in China’s manufacturing sector for the third consecutive month in June has fueled expectations for additional stimulus measures from Beijing, which could have ripple effects on global trade and investment.
Market Outlook
Analysts from Apex Securities anticipate an uneven recovery for Malaysian stocks over the next six months. They advise investors to adopt a selective accumulation strategy, focusing on fundamentally strong equities with minimal exposure to external risks, particularly recommending sectors such as construction, property, technology, and utilities. The FBM KLCI is expected to fluctuate between 1,520 and 1,550 in the coming week.