The FTSE Bursa Malaysia KLCI (FBM KLCI) closed slightly higher at 1,537.51, up 0.09% or 1.44 points from the previous session. Trading was range-bound, with the index fluctuating between 1,533.93 and 1,538.33 throughout the day.
Market breadth was negative: 514 decliners outpaced 432 gainers, with 510 counters unchanged. Total turnover was 2.93 billion shares worth RM1.67 billion, a decrease from last Friday’s RM2.30 billion.
The broader market saw the FBM 70 and FBM Small Cap indices outperform, driven by strength in the property and construction sectors.
Movers and Shakers
Top Gainers
Axiata Group Bhd: +0.21 to RM2.56
Hong Leong Industries Bhd: +0.14 to RM13.80
United Plantations Bhd: +0.14 to RM21.74
Fraser & Neave Holdings Bhd: +0.38 to RM28.98
Hong Leong Bank Bhd: +0.38 to RM19.56
Top Losers
Nestlé (Malaysia) Bhd: -0.64 to RM76.74
Kuala Lumpur Kepong Bhd: -0.28 to RM20.38
Malaysian Pacific Industries Bhd: -0.22 to RM20.78
Dutch Lady Milk Industries Bhd: -0.20 to RM28.28
Hong Leong Industries Bhd: -0.20 to RM13.60
Active Sectors
Technology stocks saw strong retail participation, with Nextgreen Global and Wentel among the most traded.
Property and construction sectors continued to lead, benefiting from recent policy changes and strong project momentum.
Policy Changes Impacting KLCI
Malaysia: Fiscal and Monetary Shifts
Sales and Service Tax (SST) Expansion: Effective July 1, 2025, Malaysia broadened its SST framework, raising sales tax rates on non-essential goods (5–10%) and expanding service tax coverage to include construction, rental, finance, private healthcare, and education for non-citizens. Essential goods remain exempt. The government is allowing a penalty-free transition period until December 31, 2025.
Overnight Policy Rate (OPR) Cut: Bank Negara Malaysia reduced the OPR by 25 basis points on July 9, 2025, aiming to support economic growth. This move has boosted property and construction stocks by lowering borrowing costs and improving home affordability.
Global Developments
China Trade Data: Stronger-than-expected Chinese export data (+5.8% YoY in June) lifted regional sentiment, helping the KLCI rebound from earlier losses.
US Tariff Threats: Renewed US tariff threats against Mexico and the EU have increased global market caution, prompting a shift to safe-haven assets and keeping investors on the sidelines.
Green Electricity Tariff Cuts: Malaysia slashed green electricity tariff premiums by up to 80% starting July 1, 2025, supporting ESG commitments and potentially benefiting utility and renewable energy counters.
Index Review & Constituents
The June 2025 semi-annual review saw AMMB Holdings promoted to the KLCI, replacing Hong Leong Financial Group. The next review is scheduled for December 2025.
Potential upcoming changes: Westports may replace Sime Darby in the KLCI, driven by passive fund inflows and IPO activity. YTL Corporation, YTL Power, and Axiata have posted the largest market cap gains among constituents, while Sime Darby and PPB Group have seen the largest declines.
Market Sentiment & Outlook
Investors remain cautious amid global trade tensions, US policy uncertainty, and ahead of key corporate earnings.
Analysts expect the KLCI to trade within the 1,530–1,560 range, with an upward bias as domestic reforms and fiscal measures take effect.
Foreign institutional investors were net sellers in June, but local retail interest remains strong, especially in small-cap and technology stocks.
