KUALA LUMPUR, June 13, 2025 – The FBM KLCI closed lower today, slipping 0.56% to 1,518.11. This decline occurred as escalating geopolitical tensions and cautious sentiment ahead of crucial trade talks weighed on the market. Despite the daily dip, the benchmark index still managed a modest gain of 0.09% over the week.
Market Overview and Key Indices
Bursa Malaysia experienced broad-based declines, with losers significantly outnumbering gainers (764 to 250). In total, 2.88 billion units worth RM2.06 billion were traded. Other key indices also trended downwards:
- FBM Mid 70: 15,333.46 (-0.83%)
- FBM Small Cap: 16,368.71 (-0.81%)
- FBM ACE: 4,487.19 (-0.83%)
Movers and Shakers (Market reports)
Top 10 Movers by Value (Gainers):
- Petronas Dagangan Bhd: RM20.940 (+RM0.180)
- United Plantations Bhd: RM21.960 (+RM0.140)
- Heineken Malaysia Bhd: RM25.960 (+RM0.080)
- Sime Darby Plantation Bhd: RM4.650 (+RM0.080)
- Genting Bhd: RM4.500 (+RM0.070)
- Kuala Lumpur Kepong Bhd: RM20.780 (+RM0.060)
- Hong Leong Financial Group Bhd: RM18.660 (+RM0.050)
- PPB Group Bhd: RM16.640 (+RM0.040)
- Malayan Banking Bhd: RM9.700 (+RM0.030)
- Public Bank Bhd: RM4.250 (+RM0.020)
Top 10 Losers by Value:
- Tenaga Nasional Bhd: RM14.300 (-RM0.220)
- MISC Bhd: RM7.620 (-RM0.200)
- Press Metal Aluminium Holdings Bhd: RM4.590 (-RM0.150)
- IOI Corp Bhd: RM4.280 (-RM0.130)
- Digi.Com Bhd: RM3.800 (-RM0.100)
- IHH Healthcare Bhd: RM6.900 (-RM0.090)
- Maxis Bhd: RM4.080 (-RM0.080)
- CIMB Group Holdings Bhd: RM6.820 (-RM0.070)
- Telekom Malaysia Bhd: RM5.760 (-RM0.060)
- Axiata Group Bhd: RM2.060 (-RM0.050)
Top 10 Most Active Stocks (by volume):
- MYEG Services Bhd: 529.0 mil units
- Tanco Holdings Bhd: 456.0 mil units
- Velesto Energy Bhd: 410.0 mil units
- Kanger International Bhd: 39.95 mil units
- Sinaran Advance Group Bhd: 37.95 mil units
- YTL Corp Bhd: 26.98 mil units
- Widad Group Bhd: 26.15 mil units
- Bumi Armada Bhd: 24.58 mil units
- Pintaras Jaya Bhd: 23.69 mil units
- Renova Auto Bhd: 22.72 mil units
Policy Changes and Global Impacts
Malaysia-US Trade Talks: Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz is set to travel to Washington on June 18 for a second round of discussions with the US government on tariffs. Consequently, this comes as the US’s 90-day suspension on reciprocal tariffs is set to expire on July 9. Malaysia aims to negotiate in four key areas: narrowing the trade deficit, addressing non-tariff barriers, strengthening technology protection, and exploring a bilateral trade agreement. Ultimately, the outcome of these talks will significantly impact Malaysia’s export-reliant industries, particularly semiconductors, which make up 40% of Malaysia’s total gross exports. (Credit: StarBiz, The Edge Malaysia, The Diplomat, Theinvestor)
Stronger Ringgit: The ringgit has shown appreciation year-to-date, benefiting from a weaker US dollar and improved global sentiment. While a firmer ringgit bodes well for companies with high import content or US dollar liabilities, it may nevertheless compress margins for exporters due to adverse currency translation effects. Therefore, analysts advise caution on export-heavy sectors, preferring banks, construction, and utilities. (Credit: The Malaysian Reserve, NST, UOB Kay Hian)
Geopolitical Tensions: Global geopolitical tensions, particularly escalating tensions in the Middle East following reported strikes on Iran’s nuclear facilities, have resurfaced as a major concern. This “risk-off” sentiment has a dampening effect on regional markets, including Bursa Malaysia. Malaysia, as a net commodity exporter, may show some resilience, similar to its performance during previous crises, with potential for sectoral shifts into defensives like utilities and plantations. (Credit: The Malaysian Reserve)
Outlook for KLCI
As StarBiz aptly highlighted, the FBM KLCI is expected to remain range-bound in the near term. While positive domestic factors like robust earnings from the banking sector and strong domestic liquidity provide some support, the ongoing US-Malaysia trade talks and broader geopolitical uncertainties remain significant headwinds. Technical forecasts suggest a potential rebound if the 1,600 support level holds, with upside targets at 1,620 to 1,630. However, a break below 1,500 could signal a bearish trend towards 1,487, driven by trade war fears. Investors are advised to focus on quality, dividend-paying stocks in resilient sectors like banking and construction, while monitoring export-driven sectors for tariff-related risks.