Kuala Lumpur, Malaysia – The FTSE Bursa Malaysia KLCI (FBM KLCI) ended July 24, 2025, on a strong note, gaining 10.53 points (0.69%) to close at an intra-day high of 1,540.32. The positive momentum was largely driven by a combination of government policy announcements, improving domestic sentiment, and global trade optimism, particularly stemming from the US-Japan trade agreement.
Market Movers and Shakers
On a day where gainers led losers, several counters stood out:
Top Gainers (by value):
- Nestle: Surged RM5.42 to RM82.32
- Petronas Dagangan: Rose 50 sen to RM21.50
- BLD Plantation: Improved 42 sen to RM10.92
- PPB Group: Gained 32 sen to RM9.62
- Petronas Chemicals: Increased 32 sen to RM3.69
Most Active Stocks:
- Nexgram Holdings (NEXG)
- Zetrix Bhd
- Dagang NeXchange (DNEX)
- Tan Chong Motor Holdings (TCHONG)
- Tanco Holdings
Petrochemical stocks, along with the Industrial Products and Services, Plantation, and Financial Services sectors, led the gains for the day. Conversely, the Energy Index experienced a decline, and the FBM ACE Index also saw a loss in points.
Policy Changes and Their Impact
Several policy developments contributed to the positive market sentiment:
- RON95 Petrol Price Reduction: The government’s announcement to reduce RON95 petrol prices by six sen to RM1.99 per litre starting September is anticipated to ease cost pressures for consumers and boost spending, positively impacting consumer-related stocks.
- Government Fiscal Support Measures: Recent fiscal aid and positive announcements from Prime Minister Datuk Seri Anwar Ibrahim, including a one-off RM100 cash handout, significantly improved domestic sentiment and encouraged investor return to the local market.
- US-Japan Trade Agreement: The recent US-Japan trade deal, which set tariffs at 15%, fueled optimism that Malaysia and other trading partners could secure similar favorable outcomes, enhancing global trade negotiation prospects.
- Sales and Services Tax (SST) Expansion: Effective July 1, 2025, the expansion of SST to include financial services and private healthcare (with new rates of 6-8%) aims to broaden the tax base and strengthen the nation’s fiscal position.
- Overnight Policy Rate (OPR) Cut: Although implemented earlier, Bank Negara Malaysia’s (BNM) decision to reduce the OPR by 25 basis points to 2.75% (the first cut in nearly two years) continues to support economic growth.
These policies, coupled with global optimism over trade talks, created a conducive environment for the KLCI’s upward trajectory.