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New Straits Times
a day ago
- Business
- New Straits Times
Bursa Malaysia dips for second day as telco stocks drag
KUALA LUMPUR: Bursa Malaysia ended slightly lower for the second day in a row, reflecting a cautious market sentiment amid mixed performances across sectors. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 0.34 per cent or 5.19 points to close at 1,519.40, down from Monday's 1,524.59. The broader market was negative, with 591 losers outpacing 411 gainers, while 473 counters remained unchanged. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said telecommunications stocks continued to underperform, weighing down the benchmark index. He said this is a surprising trend considering the favourable macroeconomic backdrop of mild inflation and anticipated strong second-quarter gross domestic product growth. "This underperformance likely reflects idiosyncratic sectoral headwinds, possibly linked to regulatory overhangs or competitive pressures. "Nonetheless, from a strategic asset allocation perspective, we remain constructive on real estate investment trusts, which may offer yield stability amid an evolving global monetary policy landscape that is increasingly skewed towards a dovish bias in the latter half of 2025," he said. Sedek said foreign institutional investors returned to net selling yesterday, following a short period of net buying. He added that the shift signals ongoing risk-off sentiment stemming from worries over external trade policies. Markets remain cautious ahead of the approaching deadline for Malaysia's bilateral tariff talks with the United States, a key event that could impact investor behaviour in the near term.
New Straits Times
2 days ago
- Business
- New Straits Times
Bursa Malaysia slips amid cautious sentiment
KUALA LUMPUR: Bursa Malaysia closed lower with slight movement, reflecting a cautious market sentiment amid a mix of domestic and regional factors. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 0.08 per cent or 1.27 points to end at 1,524.59, down from its previous close of 1,525.86. Market breadth was negative, with 606 losers outpacing 341 gainers, while 506 counters remained unchanged. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the marginal dip followed investors' reaction to the Malaysian Anti-Corruption Commission's Op Ways probe, which was launched last Thursday over alleged corruption tied to a data centre project tender. "Despite initial concerns, the impact of the investigation appears confined to selected counters, with no sign of broader market contagion. "This was underscored by today's market performance, where stocks linked to data centres, telecommunications and industrials ranked among the leading gainers, indicating that investor sentiment towards these sectors remains fundamentally resilient," he said. Sedek noted that investors are likely to take a more selective approach, re-evaluating their positions within the data centre and technology sectors instead of opting for widespread sell-offs.
New Straits Times
09-07-2025
- Business
- New Straits Times
Bursa Malaysia ends lower amid external trade pressures
KUALA LUMPUR: Bursa Malaysia ended lower on Wednesday, continuing its correction phase amid fresh external pressures. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 0.06 per cent or 0.90 points to close at 1,529.24, down from Tuesday's close of 1,530.14. Despite more gainers than losers, with 557 advancing and 371 declining while 527 counters were unchanged, overall market sentiment remained cautious due to rising geopolitical risks and uncertainties surrounding global trade. UOB Kay Hian Wealth Advisors Sdn Bhd investment research head Mohd Sedek Jantan said the introduction of a reciprocal 25 per cent tariff on certain Malaysian exports has significantly altered foreign portfolio investment trends. "Offshore investors turned net sellers as of yesterday's close, reversing the cumulative net inflows observed over the prior week. "The abrupt swing in foreign positioning underscores heightened sensitivity to trade policy volatility," he said. Sedek noted that the financial sector remained weak, with banking stocks declining for the third straight session. He added that this weighed on the Bursa Malaysia Financial Services Index, as concerns over margin compression re-emerged following Bank Negara Malaysia's unexpected 25 basis point rate cut. "The reduction in the Overnight Policy Rate to 2.75 per cent earlier than anticipated appears to be a pre-emptive measure in response to deteriorating global demand indicators and softening domestic growth momentum. "In contrast, technology, consumer discretionary, and utilities sectors saw moderate gains, supported by rotational interest in rate-sensitive and defensive plays," he said.
New Straits Times
05-07-2025
- Business
- New Straits Times
Malaysia poised to cement role as future-ready manufacturing powerhouse
KUALA LUMPUR: Malaysia is fast emerging as a competitive, future-ready manufacturing hub, a transformation that, if sustained, could chart the course of the nation's economic journey for years to come. Recent data and investment flows point to growing confidence in Malaysia's industrial capabilities, with an economist saying the country is poised for a stronger manufacturing performance in the second half of 2025. This cautious optimism comes despite lingering headwinds, from volatile energy prices and fragmented trade dynamics to ongoing shifts in global supply chains. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the firm remains cautiously optimistic about the overall outlook for 2025, while holding a more confident view of the second half. "The external environment appears to be on a firmer footing, with a reduction in disruptive developments from major economies such as the United States and China. "Unlike the first half of the year—which was characterised by volatility in global trade policy, monetary tightening, and geopolitical uncertainty—the remainder of 2025 is likely to benefit from greater policy clarity, a more balanced global economic outlook and improving investor sentiment," he told Business Times. According to the Malaysian Investment Development Authority (MIDA), Malaysia approved RM89.8 billion in total investments in the first quarter of 2025, with RM30.5 billion directed specifically toward the manufacturing sector. Of this, foreign investments made up RM25.52 billion, representing 84 per cent of the manufacturing total, and are expected to generate 18,317 new jobs. Sedek said the key catalysts in the coming months include the resolution of tariff-related uncertainties. He said the 90-day reciprocal tariff pause is set to expire on July 9 and a constructive outcome, particularly the avoidance of a 24 per cent blanket tariff and continued exemptions for semiconductors, would remove a major source of trade-related risk. He added that at the domestic level, the upcoming 13th Malaysia Plan (13MP), scheduled to be tabled between July and August, will provide a critical medium-term development framework. "Aligned with the Madani Economy Framework, the New Industrial Master Plan 2030 (NIMP 2030) and the National Energy Transition Roadmap (NETR), the 13MP is expected to prioritise high-value sectors, digitalisation, sustainability and industrial deepening," he said. He added that further domestic catalysts include the upcoming rollout of the National Investment Incentives Framework (NIIF) and the Johor–Singapore Special Economic Zone (JS-SEZ) blueprint in the third quarter, both anticipated to attract significant investment and strengthen regional economic integration. "Momentum in capital expenditure remains strong, supported by increased approvals of manufacturing projects, rising imports of capital goods, and continued credit expansion for industrial building activity. "The data centre segment is a standout, with Pearl Computing expected to tender contracts for five hyperscale data centres valued at RM10 billion in the second half, while Tenaga Nasional Bhd (TNB)'s plan to sign up to 2GW in new electricity supply agreements reflects a structural shift in energy demand linked to digital infrastructure," he said. Sedek added that 2026 Budget, scheduled for tabling in October, is expected to be expansionary, potentially exceeding RM420 billion, as it aligns with 13MP, NETR, and NIMP 2030 goals. FUTURE-PROOFING MALAYSIAN MANUFACTURING By embracing market diversification and integrating advanced technologies such as artificial intelligence (AI) and automation, Malaysian manufacturers can build greater resilience, optimise costs and stay competitive in an increasingly unpredictable global environment. Epicor Malaysia senior country manager Ben Lim said the industry players must adapt digital transformation, automation and workforce development strategies to remain competitive amid escalating global trade uncertainties and supply chain disruptions. He said local manufacturers must prioritise agility, resilience and technological adoption to navigate the increasingly complex economic landscape. "Global supply chain realignment definitely is in place. Looking at such drastic trade policy uncertainties—and of course, there is protectionist measurement—this can really bring up a lot of challenges for manufacturing sectors," he said. While acknowledging the difficulties, Lim said geopolitical disruptions, including protectionist trade policies, have led to unpredictable costs and supply chain vulnerabilities. "It's a two-edged sword. While there are challenges, we're also seeing significant benefits, whereby foreign investment has been flowing steadily into the region. "Over the past five years, sectors like semiconductors, factory automation and industrial machinery have grown rapidly. In fact, Malaysia's manufacturing industry is booming," he added. Lim said technology, especially supply chain optimisation and AI, is now critical for manufacturers navigating unpredictable conditions. "They can look at advanced supply chain solutions. These are helping them to have a visibility which enables their capability to analyse," he added. Lim said Epicor's investment in AI began four years ago, with tools now evolving into intelligent assistants and allows users to make faster and smarter decisions. "We started this AI journey about four years back. Now we have predictive, generative and today personalised AI. That is where Epicor AI module heads towards—personalised AI—and a combination of all these different modes of AI that bring towards cognitive enterprise resource planning for Epicor Kinetic." Echoing the same sentiment, Sedek said local players especially MSMEs, need to diversify their markets and adopt new technologies to reduce risks and stay competitive. He said diversifying export markets and leveraging trade initiatives like the Malaysia–Gulf Cooperation Council (GCC) free trade agreement can reduce exposure to protectionism, while robust domestic demand, supported by wage hikes and tourism recovery, offers resilience in consumer-driven sectors. He added that AI will play an increasingly strategic role in reducing systemic risks and enhancing competitiveness, while simultaneously driving semiconductor demand and accelerating the expansion of Malaysia's data infrastructure. "With TNB expected to sign up to 10 new electricity supply agreements in 2025, supporting a 1.5–2GW capacity uplift, the country is consolidating its position as a regional data centre hub. "AI is also catalysing the development of smart city solutions, enabling decentralised decision-making, real-time monitoring, and greater operational efficiency across sectors. "These shifts are raising Malaysia's total factor productivity and embedding digital resilience into the industrial fabric," Sedek said.
New Straits Times
04-07-2025
- Business
- New Straits Times
Bursa's key index closes flat with mixed performance across broader market
KUALA LUMPUR: Bursa Malaysia ended the session broadly flat today, reflecting a mixed sectoral performance across the broader market, said an analyst. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) edged up 1.2 points or 0.08 per cent to 1,550.19 from Thursday's close of 1,548.99. The index opened 1.75 points higher at 1,550.74. The broader market, however, was slightly positive with gainers outnumbering losers 489 to 466, while 509 counters were unchanged, 902 untraded and 22 suspended. Turnover stood at 3.4 billion units worth RM2.47 billion compared with Thursday's 5.09 billion units valued at RM2.94 billion. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the gains among benchmark constituents were led by consumer-related and industrial product counters. He told Business Times that the buying interest was supported by sustained domestic demand and growing optimism in data centre-related industries, a theme increasingly prominent in Malaysia's digital infrastructure ambitions. For the week, the FBM KLCI rose 1.2 per cent on a Friday-to-Friday basis. Sedek said trading activity moderated slightly as it returns to average turnover levels suggests investors are adopting a more measured stance as they await clearer policy signals and external developments. "Since June 26, foreign investors have resumed net buying of local equities, a constructive sign that reflects growing confidence in the country's macroeconomic trajectory and improving risk appetite for regional markets," he added. Given that the Bursa Malaysia Technology Index has rebounded by over 10 per cent since its recent low on June 23, he continues to view the sector favourably. This is supported by structural tailwinds from global tech investment and Malaysia's position within regional supply chain realignment. He said a dovish policy outlook from the US Federal Reserve also offers potential upside through valuation re-rating for growth and semiconductor-related counters. "We anticipate heightened caution and intermittent volatility ahead, as investors closely monitor the evolving landscape of global trade policy. "Particular attention is centred on the US' 'Liberation Day' deadline of July 9, when elevated tariffs, ranging from 20 per cent to 30 per cent, are expected to be reinstated on countries without formalised bilateral trade deals. "Malaysia, among others, may face renewed uncertainty should negotiations remain unresolved. "President Trump has indicated that official notifications outlining new tariff rates will be issued imminently to affected trade partners," he added.
