KLCI Market Update: July 16, 2025

The FTSE Bursa Malaysia KLCI (FBM KLCI) extended its downtrend on Wednesday, July 16, 2025, closing lower amidst continuous profit-taking in heavyweights and a cautious global sentiment. The benchmark index fell 13.90 points, or 0.91%, to finish at 1,511.50. Market breadth was negative, with decliners significantly outpacing gainers.

Key Market Drivers:

• Global Inflation Concerns: Hotter-than-expected US inflation data (June CPI accelerated to 2.7% year-on-year) weighed heavily on investor sentiment, leading to a sell-down in US equities that trickled into the Malaysian market. This also dampened hopes for near-term monetary easing by the US Federal Reserve.
• Trade Tensions and Tariffs: US President Donald Trump’s proposed tariffs on the EU and Mexico, along with renewed tariff rhetoric against key US trading partners, intensified market jitters. Malaysia is still awaiting clarity on its tariff status with the US, currently at 25%, while Indonesia successfully negotiated a lower 19% tariff, raising concerns about Malaysia’s competitive edge.
• Domestic Policy Overhangs: The market is factoring in potential impacts from the looming subsidy rationalization for fuel and electricity, anticipated port tariff hikes, and the expansion of the Sales and Service Tax (SST) in the second half of 2025.
• MACC Investigation: The Malaysian Anti-Corruption Commission (MACC) raid on NationGate’s subsidiary over alleged scrap-metal smuggling dampened sentiment in the industrial sector.
• Positive Developments: Despite the overall cautious mood, there was some positive news, including NVIDIA’s announcement to resume sales of its H20 AI chips to China, which could potentially favor technology stocks. The recent Bank Negara Malaysia Overnight Policy Rate (OPR) cut is also expected to support real estate investment trusts and potentially the consumer sector.

Movers and Shakers (July 16, 2025):

Top 10 FBM KLCI Movers (by one-day change):

• Gainers:
  1. Petronas Dagangan Bhd (+0.280 to RM21.650)
  2. Eurospan Holdings Bhd (+0.210 to RM2.410)
  3. Tan Chong Motor Holdings Bhd (+0.210 to RM0.790)
  4. Kelington Group Bhd (+0.150 to RM4.150)
  5. Southern Acids (M) Bhd (+0.090 to RM3.350)
  6. Greater Real Holdings Bhd (+0.080 to RM0.850)
  7. Kuala Lumpur Kepong Bhd (+0.080 to RM20.460)
  8. Carlsberg Brewery Malaysia Bhd (+0.070 to RM18.300)
  9. Signature Alkaline Group Bhd (+0.070 to RM0.080)
  10. Gamuda Bhd (+0.070 to RM5.030)
• Losers:
  1. Nestle (Malaysia) Bhd (-0.900 to RM75.600)
  2. Carlsberg Brewery Malaysia Bhd (-0.560 to RM18.300)
  3. Allianz Malaysia Bhd (-0.480 to RM17.800)
  4. Heineken Malaysia Bhd (-0.440 to RM24.040)
  5. Malayan Cement Bhd (-0.380 to RM12.000)
  6. Panasonic Manufacturing Malaysia Bhd (-0.380 to RM31.140)
  7. Hong Leong Bank Bhd (-0.370 to RM19.820)
  8. Hong Leong Financial Group Bhd (-0.320 to RM19.020)
  9. PPB Group Bhd (-0.310 to RM9.690)
  10. Sime Darby Bhd (-0.260 to RM18.060)

Top 10 Active Stocks (by Volume):

1. NEXG Bhd (18,839.0 mil units)
2. Zetrix AI Bhd (12,059.9 mil units)
3. TWL Holdings Bhd (52.8 mil units)
4. Green Ocean Corp Bhd (52.0 mil units)
5. Tanco Holdings Bhd (40.0 mil units)
6. NationGate Holdings Bhd (39.1 mil units)
7. Top Glove Corp Bhd (28.8 mil units)
8. Eco-Shop Marketing Bhd (28.1 mil units)
9. IHH Healthcare Bhd (27.1 mil units)
10. CelcomDigi Bhd (28.3 mil units)