The FTSE Bursa Malaysia KLCI (FBM KLCI) closed lower on Tuesday, July 29, 2025, falling 5.56 points or 0.36% to settle at 1,523.82. The benchmark index saw an intraday high of 1,537.62 in early trade before late-session selling dragged it down, reflecting a cautious market sentiment. Overall market breadth was negative, with losers outnumbering gainers, and turnover improved to 3.36 billion units valued at RM2.18 billion.
Key Market Movements
The market’s performance was influenced by profit-taking and investor positioning ahead of significant policy announcements.
Top Movers (Gainers):
- Allianz Malaysia: Gained 40 sen to RM17.70.
- Petronas Dagangan: Advanced 26 sen to RM21.70.
- Kuala Lumpur Kepong: Rose 24 sen to RM20.04.
- Petronas Chemicals: Garnered 18 sen to RM3.79.
- Press Metal Aluminium: Increased 13 sen to RM5.48.
- Oxford Innotech (ACE debutant): Climbed 9.5 sen to 38.5 sen.
- Tenaga Nasional: Rose 8 sen to RM13.44.
- British American Tobacco: Surged 33 sen to RM4.90.
- Westports: Jumped 7 sen to RM5.69.
- Malayan Cement: Climbed 7 sen to RM5.41.
- Sunway: Rose 6 sen to RM4.88.
Top Shakers (Losers):
- Nestle: Fell 70 sen to RM87.30.
- Fraser and Neave: Slid 52 sen to RM28.48.
- Panasonic Manufacturing: Declined 36 sen to RM10.52.
- Kuala Lumpur Kepong: Trimmed 28 sen to RM19.52.
- IOI Corporation: Lost 11% to RM3.75.
- CIMB: Slipped 11 sen to RM6.64.
- Public Bank: Shed 4 sen to RM4.21.
- Maybank: Lost 2 sen to RM9.52.
- IHH Healthcare: Decreased 6 sen to RM6.60.
- Ekovest: Fell 5.5 sen to 38.5 sen.
- Focus Dynamics: Dropped 0.5 sen to 0.5 sen.
Policy Impacts on KLCI
Malaysian Policy Landscape:
- 13th Malaysia Plan (13MP): Investors are keenly awaiting the announcement of the 13th Malaysia Plan on Thursday, which is anticipated to be pro-growth with a strong emphasis on infrastructure and industrial development under the MADANI framework. This plan is expected to provide domestic fiscal support.
- Cross-Border Insolvency Bill: The passing of this bill by the Dewan Rakyat aims to boost investor confidence.
- Trade Negotiations with US: Ongoing discussions are taking place to avert the impending 25% tariffs set to take effect on August 1, with Malaysia seeking a lower rate.
- Upcoming Domestic Policy Changes: Concerns remain regarding 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, which could impact consumer sentiment and corporate earnings.
Global Policy and Economic Influences:
- US Federal Open Market Committee (FOMC) Meeting: Investors are closely monitoring the two-day FOMC meeting (July 29-30), with the consensus expecting no change to the Fed Funds Rate. This outcome will be a key catalyst for market direction.
- US-China Trade Talks: Ongoing trade discussions in Stockholm, and positive signals from these talks, are contributing to an easing of global trade tensions. The US and EU capping tariffs at 15% has helped reduce geopolitical risk premiums.
- US Labour Market Data: The July Nonfarm Payrolls (NFP) report, due on Friday, will be closely watched for further economic indicators.
- Global Trade Developments and Monetary Policy Shifts: Lingering concerns over these factors, along with foreign fund outflows, continue to contribute to a fragile broader market outlook globally.