On Friday, July 4, 2025, the FBM KLCI ended the trading day marginally higher, gaining 1.20 points or 0.08%. This brought the benchmark index to settle at 1,550.19. Throughout the day, the KLCI traded within a narrow range, fluctuating between 1,547.70 and 1,551.78.
However, the broader market presented a mixed picture. While 489 gainers outpaced 466 decliners, 509 counters remained unchanged. Total turnover for the day reached 3.43 billion units, valued at RM2.47 billion. Encouragingly, foreign investors have started to show a net buying interest in local equities, which signals growing confidence in the market.
Key Index Movements:
- FBM Emas: Rose by 0.02% to 11,617.72
- FBM Shariah: Declined by 0.17% to 11,617.82
- FBM 70: Fell by 0.27% to 16,787.04
- FBM ACE: Edged down by 0.04% to 4,526.40
Meanwhile, the Malaysian Ringgit stood at 4.7227 against the USD and 3.3155 against the SGD as of 5:15 PM.
Top Movers and Shakers (FBM KLCI)
Top Gainers (by One-Day Change %):
- MR D.I.Y. Group Bhd: Closed at RM3.80, up 1.73%.
- Public Bank Bhd: Closed at RM4.38, gaining 1.86%.
- Press Metal Aluminium Holdings Bhd: Ended at RM5.30, up 1.73%.
- Sime Darby Plantation Bhd: Rose 1.68% to close at RM4.82.
- Genting Plantations Bhd: Increased by 0.47% to RM6.40.
Top Losers (by One-Day Change %):
- IHH Healthcare Bhd: Closed at RM6.75, down 1.48%.
- Petronas Dagangan Bhd: Ended at RM21.50, declining 1.95%.
- Sime Darby Bhd: Fell by 2.87% to RM1.69.
- Nestlé (Malaysia) Bhd: Decreased by 0.62% to RM134.80.
Most Actively Traded Stocks (by Volume):
- Borneo Oil Bhd: Saw 493.7 million units traded, unchanged at RM0.005.
- Zetrix AI Bhd: Recorded 91.1 million units, up RM0.020 to RM0.995.
- NationGate Holdings Bhd: Traded 54.2 million units, rising RM0.110 to RM1.780.
- NexG Bhd: Had 36.9 million units traded, increasing RM0.010 to RM0.400.
- Tanco Holdings Bhd: Saw 36.6 million units traded, down RM0.010 to RM0.890.
Significant Policy Changes Impacting KLCI
Several policy shifts, both domestic and international, are expected to influence the KLCI’s trajectory.
Malaysian Policy Developments
- Electricity Tariff Hike for Data Centers: A new electricity tariff, which took effect on July 1, 2025, has significantly increased operational costs for data centers. These costs are up by 10-14% before surcharges. While this policy aims for a more equitable tariff structure, there are concerns it could divert investors towards neighboring countries such as Vietnam and Thailand. Furthermore, the government’s plan to announce monthly fuel surcharges will lead to additional electricity price fluctuations, particularly impacting small and medium-sized enterprises (SMEs).
- Ongoing Economic Reforms: The Unity Government continues to push forward with its economic reform agenda under the Madani Economy framework. This includes two rounds of Sales and Service Tax (SST) revisions – one in March 2024 and another in July 2025 – designed to broaden public revenue. Additionally, ongoing subsidy rationalization efforts are in progress, with RON95 fuel next in line for adjustment.
- Monetary Policy Stance: Bank Negara Malaysia (BNM) is maintaining a broadly neutral monetary policy stance. Market expectations suggest a milder 25 basis points Overnight Policy Rate (OPR) cut in the second half of 2025. This could potentially strengthen the Ringgit and rally local equities as the US-Malaysia rate differentials narrow. BNM, moreover, emphasizes the importance of maintaining exchange rate flexibility.
- INVEST FAIR Malaysia 2025 Insights: The recent INVEST FAIR Malaysia 2025 highlighted evolving investor trends within the region. Notably, there’s a growing interest in multi-asset strategies and an increasing embrace of technology in investment, indicating a maturing investor base.
Global Policy Developments and External Impacts
- US Tariff Policy and “Liberation Day” Deadline: President Donald Trump is poised to issue official communications regarding revised US tariff rates to key global economies. A crucial deadline approaches on July 9: elevated tariffs, ranging from 20% to 30%, are expected to be reinstated on countries without formalized bilateral trade deals. Malaysia may face renewed uncertainty if negotiations remain unresolved by this date. However, CGS International anticipates an easing of tariff tensions and a mutually beneficial agreement with the US before this deadline, which could significantly reduce downside risks and volatility in the Malaysian market.
- US Federal Reserve’s Rate Cut Cycle: A dovish policy outlook from the US Federal Reserve offers a potential monetary tailwind for the KLCI. Expectations for further Federal Funds Rate (FFR) reductions in the second half of 2025 could stimulate growth and benefit semiconductor-related counters in Malaysia.