Bursa slips in early trade amid rising geopolitical risk
KUALA LUMPUR : Bursa Malaysia trended lower in early trade today as investors turned wary amid heightened geopolitical tensions in the Middle East, an analyst said.
At 9.07am, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 13.03 points, or 0.87% to 1,489.71 from Friday's close of 1,502.74.
The benchmark index opened 9.55 points lower at 1,493.19.
The broader market was negative, with 479 decliners thumping 72 gainers, 217 counters were unchanged, while 1,664 were untraded and 39 suspended.
Turnover stood at 246.13 million shares worth RM128 million.
Rakuten Trade Sdn Bhd's equity research vice-president Thong Pak Leng said Wall Street closed mixed on Friday due to uncertainty over interest rate cuts. At the same time, further escalation in the Middle East may weigh on market sentiment in the near term.
'With the US involvement in the war against Iran last Saturday, it would be interesting to see the market's reaction today.
'Given the possible heightened volatility, we expect the index to hover within the 1,480-1,500 range today and would be buyers of blue chips at the 1,480 level,' he noted.
Among heavyweights, Maybank dropped seven sen to RM9.59, Public Bank fell three sen to RM4.18, CIMB and CelcomDigi were each four sen lower at RM6.61 and RM3.75, respectively, while Tenaga Nasional and IHH were flat at RM14.22 and RM6.85, respectively.
Among the most active stocks, Hubline, SFP Tech and Malayan United all lost half-a-sen to four sen, 20.5 sen and five sen, respectively. MYEG slipped 1.5 sen to 89 sen, while Hibiscus Petroleum gained 10 sen to RM1.81.
On the index board, the FBM Emas Index shaved 114.56 points to 11,114.43, the FBMT 100 Index shrank 112.98 points to 10,902.47, and the FBM Emas Shariah Index declined 122.67 points to 11,078.67.
The FBM 70 Index dipped 242.17 points to 15,875.58 and the FBM ACE Index dropped 52.87 points to 4,347.98.
By sector, the Financial Services Index shed 105.37 points to 17,363.01, the Industrial Products and Services Index eased 1.62 points to 145.65, and the Plantation Index narrowed 45.92 points to 7,174.60.
However, the Energy Index rose 13.33 points to 749.04.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
13 minutes ago
- Malay Mail
Taxing without reform: Why Malaysia's SST hike misses the mark — Tan Wei Siang
JUNE 30 — On July 1, 2025, Malaysians will begin paying more for a range of services as the government raises the Sales and Service Tax (SST) from 6 per cent to 8 per cent. Framed as part of the Madani Government's broader fiscal reform efforts, this move is projected to generate an additional RM3 billion annually. However, a deeper look reveals that this is less about meaningful reform and more about plugging short-term fiscal gaps. The SST hike may be the most visible tax adjustment since the Goods and Services Tax (GST) was repealed in 2018, but it is not a structural solution to Malaysia's longstanding fiscal challenges. The government justifies the increase by pointing to Malaysia's low tax-to-GDP ratio — about 11.8 per cent compared to Thailand's 16 per cent or Vietnam's 19 per cent — and its need to diversify revenue away from volatile petroleum sources. But the SST, by design, is narrow in scope, non-transparent, and prone to inefficiencies. Unlike the GST, which taxed consumption broadly with built-in mechanisms for input tax credits, the SST is a single-stage tax. This results in cascading effects, where businesses simply pass the hidden costs down the supply chain, ultimately inflating prices for consumers. Because the SST only applies to selected goods and services, a large portion of the economy remains untaxed. In an economy where the informal and shadow sectors are growing, this limited coverage raises questions about fairness and effectiveness. Many economists agree that Malaysia had a better system with GST, abandoned not because it failed in principle, but because it was poorly implemented. The GST was broad-based, efficient, and allowed for more accurate tracking of economic activity. Its input credit mechanism prevented tax-on-tax effects, and it aligned with international best practices. What it lacked was political and operational maturity: it was rolled out without strong public communication, and it was not paired with sufficient protections for lower- and middle-income households. Instead of fixing these shortcomings, the government of the day chose to scrap it entirely. Now, we are left with a weaker alternative that raises revenue less equitably. The Ministry of Finance has clarified that agricultural produce grown in Malaysia are not subject to sales tax under the expanded Sales and Service Tax. — Bernama pic The current administration has signalled that more tax changes are coming, including new luxury taxes and further subsidy rationalisation. But so far, these announcements have been scattered and lack a clear, time-bound roadmap. What Malaysia urgently needs is not just higher taxes, but a comprehensive and transparent fiscal reform strategy. The government should publicly commit to a timeline for phasing out blanket fuel and electricity subsidies, expanding targeted assistance, reforming income tax structures, and, if needed, reintroducing the GST in a way that is progressive and fair. Without these steps, Malaysia risks falling into a cycle of temporary fixes and long-term stagnation. The people of Malaysia are not resistant to reform. What they resist is uncertainty and the feeling that they are being asked to pay more without knowing where the money is going or how it will improve their lives. Fiscal responsibility is not simply about collecting more money from the public — it is about governing more transparently, spending more effectively, and building trust. The SST hike, taking effect on July 1, may raise revenue in the short term, but it does not constitute real reform. Without a transparent plan, bold political leadership, and clear accountability, the government risks losing the very trust it needs to implement future reforms. If the government is truly serious about building a sustainable, inclusive economy, it must stop relying on patchwork fixes. Malaysia cannot afford to raise taxes without also tackling leakages, rationalising subsidies, and laying down a concrete roadmap for structural change. The rakyat deserves more than ad hoc policies. They deserve a government with a long-term vision, the courage to make tough decisions, and the discipline to follow through. * Tan Wei Siang writes on economic policy, structural reform, and Malaysia's development agenda. He believes in honest governance, equitable growth, and long-term nation-building. ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Malay Mail
14 minutes ago
- Malay Mail
SST will not impact private kindergarten fees, says women's minister
KUALA LANGAT, June 30 — The expansion of the Sales and Services Tax (SST) will not have a significant impact on parents who send their children to private nurseries, kindergartens or preschools, said Women, Family and Community Development Minister Datuk Seri Nancy Shukri. She said this was because the service tax would only apply to operators imposing annual tuition fees exceeding RM60,000 per student. 'The public need not worry, as it is understood that most private institutions currently do not charge fees that reach the RM60,000 threshold per year,' she told reporters after the Anjung Sinar 2025 Programme appreciation ceremony here yesterday. Nancy also reminded entrepreneurs not to capitalise on efforts to strengthen the country's fiscal position and broaden the tax base in ways that would burden parents. 'We hope they (business operators) will act honestly to help parents so that they are able to work. Operators must also remember that people need their services, so do not charge excessively,' she said. The six per cent service tax, which will be imposed from July 1 on educational services including private preschools and schools, will not apply to Malaysian citizens with disabilities. At today's programme, Nancy presented awards to five outstanding icons of the Anjung Sinar Programme by Yayasan Kebajikan Negara (YKN), representing the education, leadership, community, career and volunteer categories. The icons were selected based on their achievements and significant contributions over the three years they were mentored and guided through the comprehensive approach offered under the Anjung Sinar Programme, which began in 2023. — Bernama
Malay Mail
14 minutes ago
- Malay Mail
Ringgit firms up as weaker US dollar, Senate budget plans weigh on greenback
KUALA LUMPUR, June 30 — The ringgit extended last week's gains, opening stronger against the US dollar and a basket of major currencies, and supported by a softer US Dollar Index (DXY) amid expectations of tax and spending cuts being deliberated in the United States' Senate. At 8.01am, the ringgit rose to 4.2190/2365 against the US dollar from Thursday's close of 4.2300/2355. The US DXY is currently hovering at 97.151 points, down by 0.26 per cent from the previous close. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Senate is currently considering passing tax cut measures, reducing Medicaid spending and lowering subsidies on clean energy. 'All this is expected to raise fiscal deficits and US govt debt level, with the Congressional Budget Office (CBO) projecting the bill would increase the deficits by nearly US$3.3 trillion from the year 2025 to 2034, while 11.8 million Americans would become uninsured by 2034,' he told Bernama. The deadline for the bill is set for July 4, 2025. Mohd Afzanizam said the US government credit matrix would be weakened, which could add further pressure on the value of the US dollar. 'Ringgit has gained 0.1 per cent to RM4.2327 on Thursday. We opined that the ringgit will continue to gain strength against the US dollar and would hover around RM4.22 to RM4.23,' he said. At the opening, the ringgit traded higher against a basket of major currencies and ASEAN countries. It appreciated against the Japanese yen to 2.9185/9308 from 2.9359/9399, increased versus the British pound to 5.7876/8116 from 5.8141/8217 and improved against the euro to 4.9472/9677 from 4.9597/9661 last Thursday. Against its Asean peers, the ringgit rose vis-à-vis the Singapore dollar to 3.3067/3207 from 3.3192/3240 and gained against the Thai baht to 12.9179/9795 from 13.0254/0488 at Thursday's close. It is marginally higher against the Indonesian rupiah at 260.4/261.7 from 260.9/261.4 and inched up against the Philippine peso to 7.46/7.50 from 7.47/7.49 previously. — Bernama
