The FTSE Bursa Malaysia KLCI (FBM KLCI) ended July 31, 2025, lower at 1,513.25. This was an intraday low. It dropped 11.25 points, or 0.74%, from Wednesday’s close of 1,524.50. This dip reflected a weaker mood across the region. However, there was some optimism from the tabling of the 13th Malaysia Plan (13MP) by Prime Minister Datuk Seri Anwar Ibrahim.
Market Performance & Key Indices:
The FBM KLCI closed at 1,513.25. Its one-day change was -0.74%, and its year-to-date change stood at -2.86%. Furthermore, the FBM Small Cap showed a one-day change of -0.53%. Its year-to-date change was -14.17%.
Total market turnover also increased significantly. It reached 3.77 billion shares, valued at RM3.10 billion. This was up from 2.65 billion shares worth RM2.07 billion on Wednesday. Market breadth was slightly positive; gainers outnumbered losers 545 to 475. Meanwhile, 483 counters remained unchanged.
Movers and Shakers:
Top Movers (by Value):
- Malaysian Pacific Industries Bhd (MPI) saw a gain of RM0.74, reaching RM20.14.
- Nestlé (Malaysia) Bhd climbed RM0.68 to RM88.08.
- Hong Leong Industries Bhd added RM0.16, closing at RM13.06.
- Heineken Malaysia Bhd increased RM0.20 to RM23.92.
- UWC Bhd rose RM0.13, ending at RM2.34.
Top Laggards (by Value):
- Hong Leong Bank Bhd fell RM0.30 to RM19.00.
- Tenaga Nasional Bhd dropped RM0.26, closing at RM13.02.
- Petronas Chemicals Group Bhd lost RM0.19, ending at RM3.88.
- British American Tobacco (Malaysia) Bhd declined RM0.15 to RM5.17.
- Kuala Lumpur Kepong Bhd slipped RM0.12, reaching RM19.58.
Other Active Stocks (from image):
Many other companies also saw significant activity. These included Axiata Group Bhd, MR D.I.Y. Group (M) Bhd, and PPB Group Bhd among FBM KLCI movers and laggards. On Bursa Malaysia, Pharmaniaga Bhd, TWL Holdings Bhd, and VS Industry Bhd were particularly active. Gainers by volume included Malaysian Pacific Industries Bhd and Nestle (Malaysia) Bhd. Conversely, losers by volume featured Hong Leong Bank Bhd and Tenaga Nasional Bhd.
Policy Impacts:
Domestic Policies:
Prime Minister Datuk Seri Anwar Ibrahim tabled the 13th Malaysia Plan (13MP). This plan outlines the nation’s medium-term economic transformation. It strongly focuses on inclusive growth, environmental care, and new technologies. For example, the National Artificial Intelligence Action Plan 2030 aims to make Malaysia a regional hub for high-value investments.
Upcoming changes may also affect the market. For instance, subsidy rationalization for fuel and electricity is expected. Port tariff hikes are also anticipated. Furthermore, an expansion of the Sales and Service Tax (SST) in the second half of 2025 could add market pressure. These changes might lower consumer confidence and company profits.
Despite these concerns, the IMF improved its forecast for Malaysia. It upgraded the real GDP growth projection for 2025 to 4.5%. This is up 0.4 percentage points from its April estimate. This positive outlook is, however, balanced by global trade uncertainties.
Global Policies & Trade Tensions:
Market sentiment remains sensitive. Uncertainty around US trade policy is a key factor. There are concerns about potential new tariffs on Malaysia and other trade partners. Malaysia currently faces a 25% rate. Investors are watching to see if the current tariff negotiation deadline will be extended. They also wonder if existing tariff agreements will be changed.
Risks from potential US export controls on AI chip shipments to Malaysia could also hurt the technology and semiconductor sectors. Moreover, foreign investors continue to sell Malaysian assets. Net selling reached RM280 million in July month-to-date and RM12.4 billion year-to-date. Overall, global trade tensions and uncertainties, including those involving the US, are affecting business confidence and global growth.