Bursa Malaysia opens lower on reciprocal tariff jitters
As of 9.23am, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 0.95 per cent, shedding 14.79 points to 1,535.40 from its previous close of 1,550.19.
Across the broader market, decliners outpaced gainers 550 to 80, while 264 counters were unchanged.
Malacca Securities said with the US planning to impose restrictions on artificial intelligence (AI) chip exports to Malaysia and Thailand, the local bourse is likely to begin the week on a cautious footing.
"Still, the return of foreign funds and the FBM KLCI's undervaluation may cushion the downside risk for now, supported by the data centre theme, domestic-driven plays and anticipation of major infrastructure projects rollout.
"We remain bullish on the construction and utility sectors while Real Estate Investment Trusts (Reits) like IGB Reit and Sunway Reit may continue to benefit should Bank Negara Malaysia lower the overnight policy rate in the upcoming monetary policy committee meeting," it added.
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Malay Mail
32 minutes ago
- Malay Mail
Tariff chatter spooks market, Bursa falls below 1,530 at midday
KUALA LUMPUR, July 8 — Bursa Malaysia ended the morning session lower due to mild selling in selected heavyweight stocks, led by financial and industrial products and services counters, amid continued investor concerns over United States (US) President Donald Trump's tariff uncertainty, an analyst said. At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 7.59 points to 1,529.95 from Monday's close of 1,537.54. The benchmark index had opened 7.85 points lower at 1,529.69. The broader market was negative, with 533 decliners trouncing 305 gainers, while 410 counters were unchanged, 1,157 untraded and nine suspended. Turnover stood at 2.01 billion units worth RM1.09 billion. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng expects the local benchmark index's volatility to heighten in the run-up to the July 9 tariff expiry. 'The FBM KLCI dipped by almost 13 points following a decent performance over the past week, as we anticipate foreign funds have again turned sellers, illustrating their extreme short-term behaviour. 'For today, we expect the index to hover between the 1,530-1,545 range,' he said. Meanwhile, Hong Leong Investment Bank Bhd said the benchmark index may continue its downward consolidation from the recent May 15 peak of 1,589 points, following the US 25 per cent tariff imposition on Malaysia. 'Selling pressure could intensify amid a potential reversal in foreign flows after two weeks of net inflows totalling RM335 million,' it said in a note today. Among the heavyweights, Maybank fell three sen to RM9.69, CIMB went down 10 sen to RM6.65, and IHH Healthcare was three sen lower at RM6.69. Tenaga Nasional gained six sen to RM13.86, while Public Bank was flat at RM4.33. As for the most active stocks, NexG and Top Glove added one sen each to 43 sen and 70 sen, respectively, Supermax rose six sen to 65 sen, while Tanco slid half-a-sen to 89 sen, and Zetrix AI remained unchanged at 95 sen. On the index board, the FBM Emas Index dropped 47.87 points to 11,470.79, the FBMT 100 Index slipped 50.90 points to 11,242.33, and the FBM Emas Shariah Index lost 64.06 points to 11,436.67. The FBM 70 Index declined 53.53 points to 16,569.92, while the FBM ACE Index shed 11.10 points to 4,462.52. By sector, the Financial Services Index decreased 86.66 points to 17,635.30, the Industrial Products and Services Index edged down 1.71 points to 153.70, the Energy Index eased 3.39 points to 734.20, and the Plantation Index trimmed 28.15 points to 7,416.86. — Bernama
New Straits Times
32 minutes ago
- New Straits Times
Bursa Malaysia ends morning session lower on mild selling
KUALA LUMPUR: Bursa Malaysia ended the morning session lower due to mild selling in selected heavyweight stocks, led by financial and industrial products and services counters, amid continued investor concerns over United States (US) President Donald Trump's tariff uncertainty, an analyst said. At 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 7.59 points to 1,529.95 from Monday's close of 1,537.54. The benchmark index had opened 7.85 points lower at 1,529.69. The broader market was negative, with 533 decliners trouncing 305 gainers, while 410 counters were unchanged, 1,157 untraded and nine suspended. Turnover stood at 2.01 billion units worth RM1.09 billion. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng expects the local benchmark index's volatility to heighten in the run-up to the July 9 tariff expiry. "The FBM KLCI dipped by almost 13 points following a decent performance over the past week, as we anticipate foreign funds have again turned sellers, illustrating their extreme short-term behaviour. "For today, we expect the index to hover between the 1,530-1,545 range," he said. Meanwhile, Hong Leong Investment Bank Bhd said the benchmark index may continue its downward consolidation from the recent May 15 peak of 1,589 points, following the US 25 per cent tariff imposition on Malaysia. "Selling pressure could intensify amid a potential reversal in foreign flows after two weeks of net inflows totalling RM335 million," it said in a note today. Among the heavyweights, Maybank fell three sen to RM9.69, CIMB went down 10 sen to RM6.65, and IHH Healthcare was three sen lower at RM6.69. Tenaga Nasional gained six sen to RM13.86, while Public Bank was flat at RM4.33. As for the most active stocks, NexG and Top Glove added one sen each to 43 sen and 70 sen, respectively, Supermax rose six sen to 65 sen, while Tanco slid half-a-sen to 89 sen, and Zetrix AI remained unchanged at 95 sen. On the index board, the FBM Emas Index dropped 47.87 points to 11,470.79, the FBMT 100 Index slipped 50.90 points to 11,242.33, and the FBM Emas Shariah Index lost 64.06 points to 11,436.67. The FBM 70 Index declined 53.53 points to 16,569.92, while the FBM ACE Index shed 11.10 points to 4,462.52. By sector, the Financial Services Index decreased 86.66 points to 17,635.30, the Industrial Products and Services Index edged down 1.71 points to 153.70, the Energy Index eased 3.39 points to 734.20, and the Plantation Index trimmed 28.15 points to 7,416.86.
New Straits Times
2 hours ago
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CPO prices seen staying weak in Q3, says HLIB
KUALA LUMPUR: Crude palm oil (CPO) prices are expected to remain weak going into the third quarter of 2025 (3Q25), with prices likely hovering between RM3,800 and RM4,050 per metric tonne (mt), Hong Leong Investment Bank (HLIB) said. The firm said this is mainly due to seasonally higher production levels, supported by favourable weather conditions, and the lack of festive-driven restocking activities. "Additionally, the weak economic viability of discretionary biodiesel blending, due to a persistently wide palm oil and gas oil (POGO) spread, and ongoing uncertainties surrounding trade policies are expected to curb near-term demand for palm oil, thereby capping any meaningful upside in CPO prices," it said. HLIB noted that crude palm oil (CPO) prices have dropped by around 19 per cent since the beginning of 2025, pressured by stronger supply conditions and subdued demand. The weaker demand was partly driven by CPO's price premium over other vegetable oils in the first quarter of the year, which dampened buying interest. "In contrast, the KL Plantation Index recorded a more modest decline of 5.2% over the same period, outperforming FBMKLCI by 2.1 percentage points. "This suggests that investors may have already priced in the normalisation of CPO prices, while the absence of compelling new investment themes within the FTSE Bursa Malaysia KLCI likely led to sustained interest in the plantation sector," it added. According to HLIB, CPO prices are expected to improve in the fourth quarter of 2025. This positive outlook is driven by several factors, including the start of seasonally lower production volumes from September or October, anticipated clarity on trade policy developments, and renewed concerns over the sustainability of palm oil output. HLIB said the latter stems from years of insufficient replanting and limited new planting, which may begin to affect yields and, in turn, help support CPO prices. "Following the upside revision to our average CPO price projections and a tweak in our fresh fruit bunches output assumptions, we raise earnings forecasts for plantation companies under our coverage by 1 per cent to 23 per cent," it said.
